10 Years Later: A Look at How 911 Changed the Economy
The tragedy of September 11, 2001 was so sudden and devastating that it may be challenging at this point in time to write dispassionately and objectively about its effects on the U.S. economy. Nevertheless, its important to briefly analyze the effects 9/11 had on the economy. The historic attacks on the World Trade Center were the most appalling and debilitating in American history; 2,974 people killed and 24 were still missing as of 2009.
The economic impact of 9/11 sent America into a frenzy, especially after discovering losses of $40 billion in insurance, $14 billion in the private sector, $1.5 billion in state and local government enterprises, $0.7 billion in the US federal government, and $11 billion in the rescue and clean up operations following the attacks.
However, one should not assume that the terrorist attacks hold a direct correlation with the recession America continues to struggle with today. Contrary to popular belief, the recession officially began in the third quarter of 2000, approximately one year before the attacks. America actually embarked on growth during the fourth quarter of 2001, when the anthrax scare arose. This is not to argue that there were no significant economic ramifications from the attacks. Unsurprisingly, the airline and tourism industry suffered major blows following the 9/11 attacks and business confidence was drastically reduced.
Office space is expensive, so people are looking for solutions, like virtual offices, to help fight the added costs. This led to a rise in work-at-home jobs, as people preferred the comfort of their own home to offices and use virtual offices for there remote access thus saving their time and money.
In the end, though, the nation became closer and more unified, and if Americans remember that strength comes through unity, it can get through any crisis and come out on top.