9/11 Economic Impact

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The September 11 attacks were a series of terrorist attacks in the United States launched by Islamic extremist group al-Qaeda. Four airliners were hijacked by al-Qaeda terrorists. The first two planes, American Airlines Flight 11 and United Airlines Flight 175, crashed into the World Trade Center in New York City, causing the buildings to collapse. A total of 2192 civilians, 343 members of the New York City Fire Department, and 23 members of the New York City Police Department were killed in the World Trade Center. In addition to the immediate casualties and damages, the September 11 attacks had lasting impacts on health, economy, and security in the United States. Thousands of people suffered from physical and mental illness after the September…show more content…
and world market. Directly after the attacks, the New York Stock Exchange (NYSE) and the NASDAQ Stock Market closed down and canceled trading. “Anticipating market chaos, panic selling and a disastrous loss of value in the wake of the attacks, the NYSE and the Nasdaq remained closed until September 17, the longest shutdown since 1933. Moreover, many trading, brokerage and other financial firms had offices in the World Trade Center and were unable to function in the wake of the tragic loss of life and collapse of both towers.” (Davis) On the first day of NYSE trading after the attacks, the market resulted in a 7.1% decline. Moreover, the market lost an estimated $1.4 trillion in value for the initial week of trading. The impact on the insurance and airline industry was especially huge. Insurance companies in New York City lost about $40 billion after the attacks; the losses included property claims, business interruption, workers compensation, liability, and life insurance. Airlines lost $7 billion as both leisure and business travel declined. Business travel was one of the most profitable demands in airlines; however, most businesses suspended or canceled travel for their employees due to safety concerns. According to the Air Travel Association, 39 carriers filed for bankruptcy protection, and employment fell by 30 percent. The travel industry in North America, especially in the United States, suffered from more than $600 billion losses in total after the attacks. The impacts caused by the September 11 attacks on U.S. economy were devastating, and some of them continued to influence U.S. economy

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