economic effects after sept 11th
Economic effects of the U.S. after Sept 11th
Since the horrific attacks on the United States on Sept 11th, the nations economy has greatly dropped into a recession, although the economy was already in trouble before Sept. 11th. Due to this incident and all the effects it has caused, it is right to blame this recession on the terrorist attacks of Sept 11th.
Almost half of the states faced budget shortfalls for 2001 or 2002, which caused most peoples lives to change after the attacks. Even the U.S. economy effectively took a vacation for the rest of September. It fell greatly and caused multibillion dollar losses to many companies and industries around the nation. Some of these companies and industry were a great part in the turning wheel of the U.S. economy. (Sivy, n.pg.)
Prior to Sept 11th, the slowed US economy still however showed good signs of growth. Some signs were that companies were producing products for stores at a higher rate to provide the customers with more and more choices to choose from. This undoubtedly helped the economy grow for a while.
The nations production of American made products were on the move before the attacks but have still slowly bounced back as more and more people buy American made products. For North American Natural Gas, “prices weakness, and growth in domestic and import gas supply, and a strong position combined with the potential weakness in the US economy are likely to dampen US natural gas demand even further.” (Khan, n.pg.)
Its unclear how the attacks will affect the economic picture in most states, but in some places its already obvious. New York faces a very painful situation, and will need more federal help, even though federal spending has passed the $40 billion mark just in aid for these cities. States that depended on tourism for their income have greatly felt the impact of the recession. Places like Florida, Hawaii, Nevada, and California, are hurting as more and more people cancel vacations and stay close to home. Many people are still scared and skeptical to fly. That is also why many Airplane fares have risen since the staggering number of people purchase tickets to fly away. Many companies have filed bankruptcy and are stuck in the recession with billion dollar debts. (Theophanous, n.pg.)
Californias economy also depends on tourism, the energy crisis cost the state $6 billion. And manufacturing states, like Ohio and Michigan, already hurt by the slowdown, are unsure when things will get better. The only states not confronting hard times are ones that rely heavily on energy industries.
One of the worst effects of the Sept 11th effects is the rise of the unemployment rate. Also the amounts of workers that were laid off from these big companies. Many of these people are struggling to find jobs that fulfill their monthly payments that they were able to pay before they were laid off. It is hard for people to take time out and find a job with the same benefits that they had and similar pay which they received before. The thing about being unemployed is the fact that It doesnt affect just the worker but also the rest of the family. There is no other choice left but have to go out and find a well playing job.
The tragic events of Sept 11th has caused much havoc and destruction in many peoples lives. Just the fact of the terrorism that has happened and the amounts of lives that were lost should be a wake up call for todays society. But the economic effects and downfall of different businesses wont really go away and will still have an impact on many people. For those who lost their jobs and now those who are getting pay cuts, it will effect them greatly. Even though at this point in time the US economy is on the rise. There will still be businesses and companies that are struggling to get through it. As more people but American products and invest their money in companies will help nurture the US Economy.
Theophanous, Georgios. Lest We Forget. N.Pg. 4/24/2002.
Sivy, Michael. “A Warren Buffet market.” CNNMONEY. N.Pg. 10/08/2001. www.money.cnn.com/2001/10/08/sivy/sivy
Khan, Karim. “The September 11th Effect.” Facility City.
N.Pg. 4/24/2002. www.126.96.36.199/fc_fm_01_12_utilities.asp