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  • Essay / Economic Effect of September 11 - 1193

    War is not a cheap man's game. At the heart of every nation is an economy made up of varied wealth and resources. The prosperity of a nation depends on its economic strength. In a state of constant fluctuation, economic prosperity is often fleeting, with a single event potentially causing economic turmoil for decades. The terrorist attacks of September 11, 2001, played a catalytic role in economic change in the United States. The attacks represented isolated economic devastation, but growing security concerns and the war on terrorism have had the greatest economic impact for the United States and the world. The September 11 attacks led to the longest stock market shutdown since the 1930s. The New York Stock Exchange remained closed for six days after the attacks. Furthermore, Davis (2011) reports that upon its reopening, the New York Stock Exchange fell by almost seven hundred points, the largest single-day loss in history. Additionally, Jackson (2008) reports a 14% decline in the Dow, a loss the Dow was still feeling almost a year later. But American Airlines and United Airlines suffered the biggest loss. After the stock market reopened, American experienced a 39% decline and United experienced a 42% decline (Davis, 2011). However, in the face of discouraging numbers, Jackson (2008) reports that US markets rebounded just behind Japan, demonstrating the great economic resilience of the United States. Although stock markets present a bleak outlook immediately following the attacks, the financial loss is far from reassuring. . - The immediate financial impact of the terrorist attacks was astronomical. Makinen (2002) reports that airlines received $15 billion in federal aid. Additionally, insurance...... middle of paper...... CRS Report for Congress. Retrieved from http://digital.library.unt.edu/ark:/67531/metacrs7725/National Priorities Project. (2011). US security spending since 9/11. Retrieved from http://nationalpriorities.org/analysis/2011/us-security-sending-since-911/Seidenstat, Paul. (2004). Terrorism, airport security and the private sector. Review Of Policy Research, 21(3), 275-291. Retrieved from http://onlinelibrary.wiley.com.mutex.gmu.edu/doi/10.1111/j.1541-1338.2004.00075.x/pdfShah, Sabir. (2013). America's wars in Afghanistan and Iraq will cost $6 trillion. Global research. Retrieved from http://www.globalresearch.ca/us-wars-in-afghanistan-iraq-to-cost-6-trillion/5350789World Economic Outlook. (2001). How did 9/11 impact the global economy? International Monetary Fund. Retrieved from http://www.imf.org/external/pubs/ft/weo/2001/03/pdf/chapter2.pdf