The Effects on the Economy

Right after the terrorist attack the whole United States sort of paused out from everything they were doing. People were so shocked that they stopped doing whatever they do best. Right after 9/11 the government started to spent most of their money prior to the terrorist attacks. The government also began to use a lot of money in sending the U.S troops to Afghanistan. For the first couple months the economy dropped continuously. It is estimated in a report to congress that 130,000 people lost their jobs due to attack. The terror attack had a short-term effect on our economy. The government made Credit much more easier with a cheap interest rate as possible. So that the people who were not employed and people who suffered from the attacks can borrow money from the bank. The interest rate were also cut by .5% at that time because the government wanted people to recover as soon as possible from the crisis. The four main ways how the economy was harmed by the attacks are there was a decrease in the capital stock which is the money. The investors were not investing money like they did before. They were uncertain if they will profit from them or not. The industries also suffered a lot from the economy. Industries were also effected since people were not buying or selling products.
http://www.epi.org/content.cfm/webfeatures_viewpoints_9_11_economy
http://media.www.thetriangle.org/media/storage/paper689/news/2005/08/19/EdOp/911-Terrorism.Adversely.Affects.Domestic.Economy-967754.shtml
Picture:
http://bigpicture.typepad.com/comments/images/p1af691_securi_20060908221650.gif http://www.globalsecurity.org/security/profiles/images/9-11_1.jpg