Immediate Impact: Difference between revisions
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= Industries Affected = | = Industries Affected = | ||
- "One person's problem is another person's business" - Patrick Lenain, Marcos Bonturi, Vincent Koen | |||
== Negative == | == Negative == | ||
The immediate impact of September 11th was extraordinary. Al-Qaeda operatives have estimated that the attacks would cost the American economy roughly one trillion dollars. This is an estimate that is very hard to prove. Efforts have been taken to estimate the cost. You must calculate the price of rebuilding or repairing the buildings, the cost of the planes, the cost of income lost by the victims. You also must add the prices taken from the public and given to the government for protection. You must add the price of inflation of airline prices because of security. There are many different aspects that contribute to the price of September 11th. | The immediate impact of September 11th was extraordinary. Al-Qaeda operatives have estimated that the attacks would cost the American economy roughly one trillion dollars. This is an estimate that is very hard to prove. Efforts have been taken to estimate the cost. You must calculate the price of rebuilding or repairing the buildings, the cost of the planes, the cost of income lost by the victims. You also must add the prices taken from the public and given to the government for protection. You must add the price of inflation of airline prices because of security. There are many different aspects that contribute to the price of September 11th. | ||
Revision as of 18:39, 1 December 2007
Industries Affected
- "One person's problem is another person's business" - Patrick Lenain, Marcos Bonturi, Vincent Koen
Negative
The immediate impact of September 11th was extraordinary. Al-Qaeda operatives have estimated that the attacks would cost the American economy roughly one trillion dollars. This is an estimate that is very hard to prove. Efforts have been taken to estimate the cost. You must calculate the price of rebuilding or repairing the buildings, the cost of the planes, the cost of income lost by the victims. You also must add the prices taken from the public and given to the government for protection. You must add the price of inflation of airline prices because of security. There are many different aspects that contribute to the price of September 11th. First, the World Trade Center and other adjacent buildings were insured for roughly 4 billion dollars. The Pentagon cost another billion dollars to rebuild. The four planes cost between $50 million and $100 million each.
The victims' income was lost to the economy, however it is difficult to calculate the total lost. Some lives would be worth more, if the victim had been able to continue work for a full lifetime. The rough estimate for loss of the victims is $5 billion. People who worked in the WTC did not produce goods or services for weeks because the did not have a workspace. Many of these workers were offering financial services. The estimate loss of goods and services totaled $10 billion. The total insurance price for the New York attacks tallied between $25 billion and $30 billion.
Because the economy was hit so rapidly and so extensively, the impact of 9/11 is the best example of aggregate demand shock in decades.
Airline
Because the attacks of 9/11 were done with commercial planes, there was a large impact on the Airline industry. The commercial airline industry was already facing difficulties because of the recession. The government gave the industry aid of 15 billion dollars. 5 billion dollars immediately and 10 billion dollars to be given in loans.
Even with the help of the government the airline industry was still very close to having to file Chapter 11 bankruptcy.
Insurance
Travel/Tourism
Small Business
Positive
-Security
-Information/Technology
