effects
The events on 9/11 devastated a nation who even now is still feeling the effects and all of the anger and anguish in response to such a horrible catastrophe.
EFFECTS ON THE STOCK MARKETS and Economy
Trading stopped from the 10th to the 17th of Sept.
The shocking attacks on the World Trade Center caused global stock markets to drop drastically and furthermore close and evacuate in fear of more attacks. This shock caused a ripple effect through many economies. Value of the U.S. dollar fell sharply and the next day European and Latin American markets fell sharply as well; 4.6% in Spain, 8.5% in Germany, 5.7% in the London Stock Exchange, 9.2% in Brazil, 5.2% in Argentina, and 5.6% in Mexico. Gold and oil prices spiked, travel and entertainment stocks fell, and also Communications, pharmaceutical and military defense stocks rose.
Insurance losses
9/11 was an insurance company's worst nightmare, the losses were absolutely gargantuan being one and a half times greater than the previous largest disaster in losses, which was Hurricane Andrew. These losses include:
- $11 billion in business interruption
- $9.6 billion in property losses
- $7.5 billion in liability
- $1.8 billion in worker's compensation
- $2.5 billion other losses
Effects on the airline industry
Airlines were probably one of the parts of the economy that got hit the hardest by these attacks with both short term and long term effects, huge losses, and being forced to make substantial changes. First of all many companies already had financial troubles, add on 9/11 and many of these airliners were forced to declare bankruptcy or were pretty close to that as airlines and manufacturers demand and prices dropped drastically, lack of passenger demand, canceled flights, and increased spending for security. There was a nearly 30% decrease in demand during the after shock of the attacks and large number of businesses suspended non - essential travel for employees. Even airlines without previous financial issues were forced to renegotiate labor contracts and lay off high numbers of workers. Nearly 10,000 layoffs were announced also in the ensuing weeks that followed 9/11. TSA (Transportation Security Administration) was one of the biggest long term effects of the attacks, they required heightened security which cost airlines money for one to pay for the security and two for the passengers they lost due to the security such as baggage screenings. A study showed that baggage screenings caused a 9% reduction of passenger volume in some of the nations largest airports equaling one billion dollars lost to the airlines.
9/11 lasting effects on the economy
The 9/11 attacks pushed America to up spending security in the areas of homeland security and national defense, the attacks however decreased the private sector.
Authorization for use of military force
No body messes with the U.S. and within days of the attack they the goverment authorized use of military force those responsible for the attacks. http://www.911memorial.org/sites/all/files/Authorization%20for%20use%20of%20military%20force.pdf
This means war
With authorization the war on terror began and somewhat lead into conflicts in the middle east such as the war in Iraq and in Afghanistan All of which came to an end when the U.S. finally hunted down and killed the brain child of the attacks Osama Bin Laden.