9/11 left a lasting damage to the economy

22a715d435bc53403d856bfa5124dd5c

It was terrorist mastermind Osama Bin Laden’s goal to leave a wake of economic decline in the aftermath of the Sept. 11 attacks on America.

“The immediate shock led to a drop in confidence due to fear, and that lack of confidence spilled over into the market immediately,” said Olivia A. Jackson, associate professor of international studies at Florida Memorial University. “That week and the following week, everybody was panicking.”

Jackson, whose research area of concentration is terrorism and its impact on the economy, said the overall aviation industry felt an immediate decline followed by a hit to the insurance industry. While New York felt the worst of the economic plunge following 9/11, with a major dip in tourism and the displacement of more than 18,000 businesses in the immediate area, Jackson said the real estate and housing market were also automatically impacted.

According to a New York Times report a year after the attack, travel remained depressed, with fewer tourists from Asia and business travelers coming to the city.

In a study conducted by the United States Congressional Research Services it was declared that close to $50 billion in insurance losses occurred, making the event one of the largest insured incidents in history, giving rise to huge property and casualty claims, according to the report.

“The instant those attacks occurred it became cyclical throughout the economy both in the United States and on a global level,” said Jackson.

According to Bryan Roberts, Ph.D., who conducted research on the macroeconomic impact of 9/11 on the United States for the Department of Homeland Security, tourism took a dive nationwide initially, but it regained momentum as more people traveled domestically by car and in their own areas.

“By 2003, we were back to a level you might expect,” he said.

However, Roberts noted that for two years after 9/11, there was a sharp drop in the number of international visitors to the U.S., and although it did recover subsequently, it never came back to the level expected, he said.

“[The event] did lead to a permanent negative impact on the number of international travelers to the U.S.,” said Roberts.

Jackson agreed, saying while economic growth slowed following the attacks, the U.S. economy was already in a recession months prior to 9/11.

Jackson’s research, conducted in 2008, highlighted the U.S. economy’s resilience despite the catastrophic nature of 9/11.

Long-lasting impacts, however, are likely to be associated with the responses that the U.S. made to the attack, said Roberts.

“I think they would be difficult to quantify,” he said. “For example if you are willing to include Operation Iraqi Freedom as a response, that clearly had an impact in terms of military spending and some direct economic impacts.”

Jackson said the U.S. budget was impacted because of the spin-offs such as going into war.
“The U.S. started running up its debt,” she said.

According to a 2011 report by the U.S. Congressional Research Services, Congress has approved a total of $1.283 trillion for military operations, base security, reconstruction, foreign aid, embassy costs and veterans’ health care for the three operations initiated since 9/11.

In the 10th year of operations since the 9/11 attacks, as troops are withdrawn in Iraq and increased in Afghanistan, the cost of war continues to be a major issue including the total amount appropriated, the amount for each operation, average monthly spending rates, and the scope and duration of future costs, the report said.

Overall, however, New York City Comptroller William Thompson Jr. summed up the effect of the attacks in a report just a year after 9/11. He said the loss to the city, and country, was truly incalculable as an event that killed thousands, shattered the lives of hundreds of thousands more and left a scar on the landscape and in the hearts of New Yorkers and Americans alike.

Follow Steve Annear on Twitter @steveannear



News
Entertainment
Sports
Lifestyle
Local

NYPD looking for man they say assaulted elderly…

      The New York City Police Department is asking for the public's assistance in locating a Hispanic male 20's wanted in connection with…

Local

Three arrested after allegedly assaulting off-duty officer in…

Three men were arrested early Saturday morning after allegedly assaulting an off-duty officer at a Bronx bodega, and the NYPD is asking for the public's…

Local

Healthcare union creates vibrant West Indian Day Parade…

Volunteers worked almost around the clock through the weekend, putting the flashy finishing touches on hundreds of costume pieces 1199SEIU members will wear while marching…

National

Top 10 most hipster college campuses

Hipsters are everywhere these days. You can't walk down the anywhere anymore without seeing a pair of skinny jeans on a handlebar mustachioed 20-something, a…

Arts

Theater: Discouraging 'Poor Behavior'

Theresa Rebeck's latest off-Broadway play, about two couples sparring on a weekend getaway, repeats a few mistakes of her past.

Gossip

Chef Todd English arrested for DWI in the…

Celebrity chef Todd English is facing DWI charges after a traffic stop on Sunday.

Movies

Box office: 'Guardians of the Galaxy' is 2014's…

This weekend "The Guardians of the Galaxy" passed the fourth "Transformers" movie to become the highest grossing film of 2014.

Gossip

Spears back with controversial ex?

Is Briteny Spears back with Adnan Ghalib?

Sports

Novak Djokovic feeds off US Open crowd to…

Novak Djokovic isn't a native New Yorker, but he sure knows how to use the U.S. Open crowd to his advantage.

NFL

Odell Beckham still 'weeks away,' Tom Coughlin angry…

Giants head coach Tom Coughlin has fought a losing battle against the media all preseason over the status of wide receiver Odell Beckham Jr.

NFL

3 things we learned in the Giants preseason…

The final score didn’t matter — a 16-13 win by the Giants — but it would’ve been nice to finally see Big Blue’s new-look offense get on track.

NFL

NFL Power Rankings: Seahawks, Broncos, Patriots, 49ers start…

NFL Power Rankings: Seahawks, Broncos, Patriots start at top

Education

These college students think breakfast is the most…

  It should be no surprise that the city that never sleeps is also home to the most students who like to order food in…

Sex

When it comes to dating, height matters

Does a man’s height really matter when it comes to dating? Unfortunately - according to a new study - the answer looks like it’s yes.…

Travel

10 free apps to make traveling easier

Finding the nearest bathroom, calculating currency exchanges and locating your departure gate must have been difficult for travelers of previous generations. But we wouldn't know,…

Travel

How to get a seat upgrade to business…

It used to be much easier to upgrade your coach seat to business or even first class, but rigid rules and tighter schedules have made…