Effects Of 9/11 On The Economy

The Aftermath of 9/11 on the New York Economy While looking at the recovery of the New York Economy we see that the terrorist attack that occurred on September 11th, 2001 considerably damaged multiple significant aspects. This attack started the extended struggle to maintain the strong economic view that the state of New York tried to withhold. Statements concerning the attack showed that the terrorists had the intention of destroying the head of the United States financial infrastructure. According to the History.com webpage “New York Stock Exchange resumes bond trading” the NYSE would become the top investment capital. This proves that New York is strongest economic and financial trading in the world which makes the state vulnerable to

Although some domestic companies would be content with the increased cost for imports, American exporters struggle with the costs to ship their products to foreign markets. The New York government took a serious hit financially due to the money spent in rebuilding and a decline in annual revenue. The federal response had two objectives; to reimburse the city for emergency costs, and to stimulate the local economy with economic developments motivations. The federal government has authorized grants and tax reliefs to help in the rebuilding of the lower Manhattan area. According to the webpage “Measuring the Effects of the September 11 Attack on New York City”, the major components of New York City’s public and private physical capital stock were destroyed in the WTC attack such as commercial space, retail stores, subway tunnels 1-9, (PATH) train station, and parts of the telecom communications. The WTC earning and losses, property damages, clean-up, and restoration was estimated to be about $36 billion through 2002. Losses to the city of New York came out to actually be approximately $95 billion. Counting the value of lives lost, property damage, lost production of goods and services, clean up and restoration, and loss in stock market

The main reason for the decline in tourism to New York was the issue on security and terrorism. In order to get extensive security this places a price on the world economy in the terms of a decline in productivity growth and more restrictions in the free shipping of goods, services and capital. In the following three months after 9/11 attack, cost the city’s economy 143,000 jobs and a $2.8 billion in lost wages, which led to effects on unemployment issues. According to the webpage “Economic Impact Analysis on the 9/11 Attack on New York City” financial services and insurance create over 75% of lower Manhattan’s $73 billion in economic output. These examples show that the 9/11 attack had a domino effect on New York City spending budget in the way that a loss of a source of revenue in area is the loss in another. The destruction of the World Trade Centers caused a temporary suspension to all financial markets in lower Manhattan. This was the longest suspension since the Great Depression. The NYSE closed its doors on July 31st 1914 after large numbers of foreign investors began sell ng their holding in hopes of raising money for the war. After a four month suspension the NYSE reopens on