Economic Costs to the United States Stemming From the 9/11 Attacks

9/11 terrorist attack not only resulted in a tragic loss of life and destruction of property, but also a short-term disruption of economic activity. There is short term and long term impacts brought by the terrorist attack.

Short term Impacts
1. Lower Manhattan lost approximately 30 percent of its office space and a number of businesses ceased to exist.
2. Close to 200,000 jobs were destroyed or relocated out of New York City, at least temporarily.
3. The destruction of physical assets was estimated in the national accounts to amount to $14 billion for private businesses, $1.5 billion for state and local government enterprises and $0.7 billion for federal enterprises.
4. Rescue, cleanup and related costs have been estimated to amount to at least $11 billion for a total direct cost of $27.2 billion.

Long term Impacts
1. Higher operating costs.
2. Higher levels of inventories.
3. Higher risk premium.
4. Shift of resources away from the civilian labor force toward the military.
5. Shift away from globalization.

Looking for more information? : http://www.ccc.nps.navy.mil/si/aug02/homeland.asp

Posted by: MX