Twelve years ago, the USA was more concerned with summer vacation than terrorist attacks. The attacks that took place on September 11, 2001 are considered to be the deadliest acts of terrorism on U.S. soil. Even though the attacks took place in only three states, they caused an outcry amongst Americans all over the nation. Data showed that gross domestic product (GDP) from the first two quarters of 2011 both contracted and so it was initially thought the gross GDP growth would decrease noticeably after the attacks. Data that was published in October 2001 showed that GDP had contracted during the 3rd quarter. This led to the assertion that “The terrorist attacks pushed a weak economy over the edge into an outright recession.” This claim was soon disproven after data revisions for GDP were released in 2002 displaying a positive growth (annual rate of 2.7%) beginning in the 4th quarter of 2001. At the time, because of the attacks, it would have made sense for GDP growth to decrease and so this claim seemed plausible. But after data revision, whatever effects the attacks may have had on the economy, they did not drive “a weak economy over the edge into outright recession.” Although the attacks on 9/11 did not have that substantial of an effect on the economy as most people think, they did leave wounds in the economy that have been trying to heal themselves ever since. The fiscal-monetary response after the attacks were effective in calming down anxious citizens. National productivity unfortunately took a sharp turn and decreased in comparison to the year before but rose in the year after. Oil prices took a sharp increase as supplies dissipated but a significantly decline in prices followed soon after chaos had appeased. The value of ... ... middle of paper ... ...ed confidence in the banking system. Banks borrowed extensively from the Federal Reserve’s discount window to carry uncleared payments. Prominent banks in affected areas were not that deeply affected because most of them keep their assets and liabilities in other locations and have back-up record keeping. Some foreign banks had their U.S. activities suspended, but did not appear suffer major losses. Normal operations resumed within a week after the attacks. Despite the heart-wrenching, atrocious attacks on the nation’s prime financial center during an economic recession, the economy showed resilience. This can be attributed to the fact that our economy is one of the strongest in the world, robust enough to take on virtually any attack. The course of events following 9/11 suggest that policymakers are already adroit at reacting to crises on the macroeconomic level.
* The economy in the US and around the World was affected since the war on terror began.
In both situations the government gained a substantial amount of power with nearly full support of the American people, based on their fear and need for safety and protection. In general, following any crisis the changes in society, politics and foreign policy are the same: increased government power with the support of its citizens, exactly as in post-9/11
The financial crisis of 2007–2008 is considered by many economists the worst financial crisis since the Great Depression of the 1930s. This crisis resulted in the threat of total collapse of large financial institutions, the bailout of banks by national governments, and downturns in stock markets around the world. The crisis led to a series of events including: the 2008–2012 global recessions and the European sovereign-debt crisis. The reasons of this financial crisis are argued by economists. The performance of the Federal Reserve becomes a focal point in this argument.
Taylor, J. B. (2009). The financial crisis and the policy responses: An empirical analysis of what
These conditions have the ability to cause recession. Now that an armistice has been reached in Korea, a recession is beginning to occur (Pach and Richardson, 54). I believe that the President’s chief concern should not be to make an immediate and fast acting restoration of the general economy. The problems of the federal deficit and the recession must wait until the more important problems are dealt with. The problem at hand is the rising rate of unemployment.
9/11 was one of the most devastating events in American History. Four hijacked passenger airplanes killed almost three thousand people. 9/11 changed millions of lives forever. American Citizens didn’t feel safe. This attack was a wake-up call to American security. 9/11 forced the country to acknowledge its shortcomings and fix them, before any more harm could come upon the United States of America. 9/11, as all acts of terror do, promoted the growth of technology, in this case, security in the United States. 9/11 also brought about feelings of hatred to the country. The United States soon became known as one of the most intolerable nations on this planet. Lastly, 9/11 butchered the economy and forced it down a long road to recovery.
War is not a cheap man’s game. At the core of every nation sits an economy comprised of varying wealth and resources. A nation’s prosperity is dependent on its economic fortitude. In a constant state of fluctuation, economic prosperity is often fleeting, with a single event capable of causing economic turmoil for decades to come. The terrorist attacks of September 11, 2001 acted as a catalyst for economic change in the United States. The attacks presented isolated economic desolation, but the growing concern for security and the war on terror provided the greatest economic impact for the United States and the world.
However, prior to 2008, nearly everyone was blind to their impending doom; investors, bankers, government regulators, the general population, and even the chairman of the Federal Reserve, Alan Greenspan, a man who was considered the economic guru, was fooled into believing the prosperity America had been enjoying would last for the foreseeable future (“Rethinking” 20). By this time there had been only mild economic downturns or, at most, short periods of turmoil. Financial institutions and large corporations have grown accustomed to the decades of economic prosperity resulting from the post-war economic boom, long forgetting the lessons learned from the Great Depression (“Rethinking” 20). In fact, economists concluded that America had entered a new era of calm.
B. The 9/11 attack had immediate and long-term economic impacts, and to this day some continue. The economic effects coming from the September 11 attack were initially shocking. It caused global stock markets to drop sprucely. The September 11 attack resulted in approximately 40 billion in losses of insurance. It led to one of the biggest government spending programs in the U.S. history, the War on Terror. The biggest economic impact of 9/11 was how the increased defense spending led the U.S. to a debt crisis.
The attacks that occurred on 9/11 took place on September 11th, 2001. In this devastating event, four different attacks had taken place. Each of the attacks were carried out by terrorists. The group responsible for the attack was Al-Qaeda, a militant Islamist organization that is known to be global in present day. The group itself has a network consisting of a Sunni Muslim movement that aims to make global Jihad happen. Furthermore, a stateless, multinational army that is ready to move at any given time. This terrorist group focuses on attacking non-Sunni Muslims, those who are not Muslim, and individuals who the group deems to be kafir. Ever since the late 1980s, Al-Qaeda has been wreaking havoc all around the world. The leader of the group once being Osama bin Laden. Three planes were bound for New York City while another plane headed towards Washington, D.C. which was supposed to take out the U.S. Capitol. Two of the airplanes crashed into the World Trade Center. One plane hitting the North Tower and the other hitting the South Tower. The third plane had crashed into the Pentagon taking out the western side of the building. The last and final plane was focused solely on taking out the U.S. Capitol in Washington D.C. but failed due to passengers of the plane coming hijacking it from the hijackers. The passengers attempted to take out the hijackers but sadly failed, crashing it into a field in Pennsylvania. Throughout the content of this paper, we will be focusing on the role of media when it comes to 9/11; more specifically: how the media's coverage of 9/11 manipulated our feelings towards 9/11, how it affected Islamophobia in America, and the lasting effects of 9/11.
When the attacks of September 11th occurred, the federal government had to completely close down some airports in the US. This created a negative effect on the industry as it was a shock to their entire organization. Planes in the US and around the world were canceled due to this attack as well. Planes were not flying anywhere, as the plan was to prevent any other attack. Each plane that was cancelled had to be paid by the airline company directly. According to the International Air Transport Association there was a drastic change in the amount of flights between the date before and after the event. Around 37,600 less flights flew the day after the attack had occurred. The number of flights dramatically decreased in those three days; in addition every...
Every few years, countries experience an economic decline which is commonly referred to as a recession. In recent years the U.S. has been faced with overcoming the most devastating global economic hardships since the Great Depression. This period “a period of declining GDP, accompanied by lower real income and higher unemployment” has been referred to as the Great Recession (McConnell, 2012 p.G-30). This paper will cover the issues which led to the recession, discuss the strategies taken by the Government and Federal Reserve to alleviate the crisis, and look at the future outlook of the U.S. economy. By examining the nation’s economic struggles during this time period (2007-2009), it will conclude that the current macroeconomic situation deals with unemployment, which is a direct result of the recession.
In 2009, the United States economy began to recover from the Great Recession. To aid in the recovery, the newly elected president Barak Obama created the American Recovery and Reinvestment Act better known as the second of two “Stimulus Packages.” Pa...
The events that unfolded on September 11th and the days that followed also profoundly effected the stock market. It is the purpose of this paper is to examine what happened to both the Dow Jones Industrial Average and the NASDAQ after September 11th and how it is similar to events such as the bombing of Pearl Harbor, the Oklahoma City bombing, and the Gulf War in terms of how the stock market experienced a blow and bounced back after a while.
At the time, there were not adequate facilities available to meet the demand for additional funds. Bank’s reserves of money were stored around the nation at 50 locations. The reserves were not able to be shifted quickly to the areas that were experiencing increases in withdraw demand. The immobility of reserves only added another element to the financial panic (Schlesinger pp. 41). The credit situation would become tense. Since the banks coul...