Economy Growth Since September 11th 2001

Essay by EssaySwap ContributorUniversity, Bachelor's February 2008

download word file, 4 pages 0.0

The United States economy has been greatly impacted in recent years by the terrorist attacks of September 11th, 2001 and by natural disasters such as hurricanes.

After the events of September 11th 2001 the airline and tourism industry reported huge declines, consumer spending was off largely (in October retail sales did bounce back more than anticipated though), and the unemployment rate jumped to 5.4% in September in and continued to rise in 2001. With the attacks, it ruined 13.4 million square feet of business offices leaving many unemployed in the city of New York.

Federal economic analysts have also made a few predictions on the economy post September 11th 2001. They predicted: · The consumer confidence could be fragile · A reduction in real gross domestic product due to a decline in consumer spending · That "on the fiscal front there could be a cut in tax rates and rebates and along with Monetary Stimulus could help the growth of Aggregate Demand" (

year2001plus911.htm) · On the international front it is unlikely that the United States would be able to help boost the economy at all.

Many of the predictions were correct about the economy after the attacks. The United States had always been rather isolated from the terrorist activities that a large segment the world had experienced. With the events of 9/11 Americans were forced to change some of their beliefs and as a result how they used their money changed as well. Spending dropped tremendously due to the lack of confidence in the consumer. Saving their money for a rainy day became the new way to use their money instead of spending it on commercial goods. Companies tried to boost spending by having large sales on goods such as cars (low interest rates) and sales on everyday items.