Economics of the War on Terrorism :: 9/11 Recession Essays

The excerption to bomb the World traffic Center was more than symbolic. The collapse of the towers coincided with a slowing global economy and was probably intended to cause as much economic as physical harm. The crisis depart have abstruse economic repercussions in a number of areas while some move of the economy pull up stakes be hurt, other sectors may actually benefit, and it is accomplishable that increased defense spending could stimulate the slowing economy in the short run. A global economy requires openness and speed, whereas increased bail often entails putting up barriers and walls. The state of war on terrorism will also dramatically increase security courts at all(prenominal) level. Americas distant global commitments may become enormously expensive and draining. The war on terrorism will decrease consumer spending, the stock market, exchange rates, air lane costs, and immigration rates. Furthermore, how will a slowing global economy serve and deteriorate the slowing American economy? The terrorist attacks on the World Trade Center will cost New Yorks economy up to 105 one cardinal million dollars and 115,000 jobs. Allen Hevesi, the city comptroller, did a recent report of the breakdown of some costs Rebuilding the World Trade Center as smaller buildings will cost 6.7 billion Repairing and restoring other damaged buildings will cost 5.3 billion Value of equipment, fomites, computer systems destroyed will cost 12 billion muzzy struggle using estimate of 5,600 throng will cost 11 billion Clean-up and stabilization of WTC find will cost 9 billion City government overtime, vehicle losses, road building will cost 7 billion spend by private owners on repairs will cost 1 billion Treating injured, loss of income from injuries will cost 3 billion Lost strain and economic activity will cost 21 billion Lost rent for damaged buildings will cost 1.75 billion Lost wages because of companies leaving New York will cost 3 billion. The city will need additional federal aid to recover. The long-term impact of the attacks depends on how quickly the nations economy recover and the decisions on where to locate by the companies. The city initially paid for clearing the area and the close to visible portion of the cleanup, which was nearly a half a million tons of steel, concrete and debris.The World Trade Center attacks were said to be hurting the civilian economy in ways that merely a military engagement like the Persian Gulf War didnt. MSNBC intelligence reported that because of its global scale and long-term nature, the war on terrorism will cost more than the Persian Gulf War, which totaled active $80 billion in constant fiscal-year 2002 dollars.