How terrorism affect our economy?
How terrorism affect our economy Terrorism and terrorist activates are never intended to target an economy directly , instead it is designed to scare people who overwhelmed by there trepidation destroy there own economy The pliant economy of United States was misjudged in contrast with the September 11 terrorist attacks . Despite an estimated 120 billion of damage and a great deal of anxiety , one year following the 9 /11 attacks considerable recovery was recorded in U .S economy A disagreement between the Economists world wide has been shaping up over the affects
Terrorism and terrorist activates are never intended to target an economy directly , instead it is designed to scare people who overwhelmed by there trepidation destroy there own economy
The pliant economy of United States was misjudged in contrast with the September 11 terrorist attacks . Despite an estimated 120 billion of damage and a great deal of anxiety , one year following the 9 /11 attacks considerable recovery was recorded in U .S economy
A disagreement between the Economists world wide has been shaping up over the affects
of terrorism on the economy of USA , many feel that because acts of terrorism are usually aimed towards small portions of the stock of capital of a country so effect on economic activity are not very large (Enders and Sandler 2006 . On the other hand , consciences of terrorism on the economy under pragmatic estimation suggest large and long term affects (Terrorism and the World Economy 40
If we review the federal budgets between FY 1998 and FY 2001 48 .3 billion where available in surplus . Attacks of September 11 originated a blow to the economy of Manhattan , but not to that of Boston or Chicago Terrorism creates a pessimistic affect on industries like air travel hotels and insurance at large , but if we review economy 's overall performance , investment and demand shifted to other industries-especially when Federal Reserve eased credit in to calm post-Sept . 11 markets
The immediate and the fore most impact that originate due to terrorism is the development of Paranoia attitude towards the economy through restrictive air travel and raising uncertainty , economy is drifting into a phase of recession . U .S economy has been diminishing even further after U .S invasion in Afghanistan and Iraq . Another way terrorism affected our economy is the lift in oil price which proved to be an economic jolt over the American nation who is now linking this oil situation with the upcoming elections and political agenda of American presidential candidates . The most direct damage that terrorism brought to our financial system is the deficit of U .S . government budget , which was a record of 413 billion dollars in 2004 . A slight drop of 198 billion in deficit is being predicted by CBO for FY 2009 which is expected to increase moderately by 2010 . If we analyze the reports released by CBO we will realize the shocking increase in the expenditure of war on terrorism over the last few years , federal finances for the department of home land security , and ever mounting cost of government beneficial social sachems such as medical health care and social security has halted economical development . Economists are predicting an inevitable increase in red ink taxation this is resulting in an increasing cost of housing and other basic amenities which is ultimately decreasing the consumption power of an American (CBO
Terrorism creates a general sense of insecurity , this brings a huge expanse on U .S federal budget in shape of home land security dept Congressional Budget...
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