HOW DID 9/11 EFFECT THE ECONOMY?

By: Kortny Case

THE PENTAGON

The Pentagon Before 9/11

The Pentagon On 9/11

THE WORLD TRADE CENTER

The World Trade Center Before 9/11

The World Trade Center On 9/11

9/11 Terrorists

How 9/11 Affected the Economy

September 11 affected the economy by

creating billions of dollars worth of

damage, a major loss for airlines and

tourism, and many lost jobs and wages.

Creating Billions of Dollars Worth of Damage

The damage to the Pentagon-over a billion dollars to repair

The four planes-$50 million and $100 million each After the first month following the attacks-105 billion

dollars worth of damage Total estimated cost of cleanup-600 million The FEMA (Federal Emergency Management Agency)

spent $970 million donated $1.4 billion to 9/11 charities Estimated amount of money needed to overhaul lower-

Manhattan subways-$7.5 billion U.S. government granted almost $5 billion Insurance rates for people went up after 9/11 and the

total amount of insurance paid worldwide was $40.2 billion

From September 11th to September 17th NASDAQ, The American Stock Exchange, and The New York Stock Exchange were closed because of the attacks.

The Dow Jones Industrial Average fell 684 points (7.1%)

This was a record-setting one-day point decline The DJIA fell 1,369.7 points (14.3%) by the end of

the week For the week the American stock market lost a

total of $1.4 trillion That is now equal to $1.72 trillion in present day

Many policemen and firefighters lost their lives in 9/11

Many charities and organizations were created to help out the families of these police and firemen

American’s raised an estimated amount of $500 million for the families of New York policemen and firefighters

There was an average of 1 million dollars received by widows of policemen and firefighters

A Major Loss for Airlines and Tourism

After 9/11 people no longer wanted to travel using the airlines because they felt they were unsafe

In 2001 1.5 million Americans changed their holiday travel plans and found other transportation

When tourism decreased this caused a major loss in jobs for people that worked in a sector

Sector-employed 280,000 people and generated $25 billion per year

Hotel occupancy also declined and this caused 3,000 employees to lose their jobs

Airlines had to refund every ticket purchased to people unable to fly on 9/11

The United Airlines and American Airlines made initial payments of $25,000 to help immediate victims families

Before the attacks the airlines were already having financial troubles. The attacks caused airline and plane manufacturer share prices to decrease.

After the attacks the share prices of airlines and airplane manufacturers declined.

Midway Airlines was already at risk of bankruptcy so they were forced to shut down operations almost immediately afterwards.

Other airlines were at risk of bankruptcy and there were thousands of layoffs.

Things got so bad that the government had to provide an aid package to help the industry which included $10 billion in loan guarantees, and $5 billion for short-term assistance

After 9/11 the airports were forced to take extreme measures to make the airlines safe for passengers.

Millions of dollars were spent on full-body scanners and other security technology, including bomb detectors.

Money was also spent to hire more employees and security guards to do proper searches.

Americans were forced to pay more taxes in order to pay for these precautions but in the end the majority of people think this is a necessity.

Many Lost Jobs and Wages In the 18 months before September 11th there

were 1,642,988 jobs lost. In the 18 months following the September 11th

attacks there was a loss of more than 2.5 million jobs.

From 9/11 through the end of February, there was a job loss total of 2,523,217.

This was an increase of 54%, or 880,988 jobs. People that worked for the transportation

industry were hit the hardest and 226,674 jobs were lost along with the aerospace/defense sector, where 138,937 jobs were cut

There were a total of 146,100 jobs lost in New York because of the attacks.

On an average day prior to 9/11 there were 50,000 people working in the world trade center.

All of these jobs were lost and almost 3,000 people were killed.

People who worked for the airlines lost their jobs or were laid off.

Also due to the decrease in travelers there were a lot of layoffs for hotel employees

About 18 thousand businesses were ruined after September 11th

Many people wanted to help after 9/11 and in order to do so they applied for jobs that would give them that chance.

There was a 40% increase from ’01-’02 of Peace Corps applications.

Also there was a 50% increase of job applications to the CIA.

There were also people that wanted to help the families of people involved in 9/11 financially by becoming lawyers so there was a 17.9% increase of applications to law-school

due to the terrorist attacks on September 11, 2001 the American economy has changed drastically.

Not only is America still dealing with the aftermath of this tragic day but it will remain in people’s hearts for the rest of their lives.

September 11 affected the economy by creating billions of dollars worth of damage, a major loss for airlines and tourism, and many lost jobs and wages.

South tower destruction from south

http://911research.wtc7.net/wtc/evidence/videos/index.html

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<http://en.wikipedia.org/wiki/September_11_attacks >. "Economic Effects Arising from the September 11 Attacks". Wikipedia. Accessed 15 May

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Dudley, William. The Attack on America: September 11, 2001. Greenhaven Press: Bonnie Szumski, 2002.