Economy Before 9-11-01
In the years prior to 9/11, the US economy experienced a boom, followed by a significant decline. From the mid-1900's until early 2000, the economy was doing extremely well, characterized by high GDP growth, increased productivity, and low unemployment. Then, in the first quarter of 2001, GDP began contracting, and the economy went downhill from there. GDP growth slowed, production fell, unemployment increased, stock prices decreased, inflation rose, consumer confidence plummeted, causing a decline in consumer spending, companies downsized and experienced a decrease in profits. In the second quarter of 2001, real GDP had only grown by 0.3%, whereas GDP had grown by 1.3% in a similar period the previous year. In August 2001, the unemployment rate reached 4.9% and 6.9 million Americans were unemployed, compared to 5.5 million a year before. All of these aspects caused an overall decrease in economic activity. Negative situation of economy after 9/11 cannot necessarily be attributed to the terrorist attacks, because many of the problems were already there before
before september 11th
-shift from intellectual(techonology)to land based (coal and oil industries)sources of growth
-tax and interest rate cuts (lead to rise in housing industry/cost of living)
-global integration
-economy was in 3rd quarter of contraction/recession
-GDP was falling
-Unemployment was rising
-Negative situation of economy after 9/11 cannot necessarily be attributed to the terrorist attacks, because many of the problems were already there before
