Economic effects of september 11.

Our sense of immunity is gone. Similar events are the Arab oil merchandise banishpage of October 1973--which challenged our assumptions about the continued availability of plentiful, cheap energy--and the October 1957 Sputnik launch--which raised fears of world-wide missile attack. two of those shocks triggered important changes in spending priorities. some(prenominal) hit a U.S. prudence that had already been slowing. Both were ensue or rapidly followed by recessions. We can never know, with confidence, how the delivery would switch evolved had the Sputnik launch, the oil ban or the September 11 attacks never occurred. Such events are uncommon, and each has sole aspects. Moreover, our gustation of the terrorist threat and the measures necessary to combat it is still developing. With this caveat in mind, it appears that the September 11 terrorist attacks subtracted possibly 1 percentage put on aim from annualized third-quarter gross domestic product growth, making wha t would have been a small, positive bite small and negative. Spillover from the attacks makes a more more significant GDP decline likely in the current quarter. In contrast, the chance for the first half of 2002 has been little-affected. Unfortunately, that aspect calls for output growth so sluggish that jobs will repress and the unemployment rate will continue to rise. Pre assault Trends Figure 1 satisfactorily summarizes the economic situation we were cladding leading up to the attacks.

Consumer spending decelerated early last year, nevertheless continued to add-on right through August 2001. industrial exert ion unploughed lift, unabated, until Septe! mber 2000, and fell moreor- less steadily since. Obviously, output cannot wince indefinitely in the face of rising consumer demand. Consumer demand cannot boom out indefinitely if firms continue to cut production and jobs. One or the other of these trends was going to have to prepare way. There were hints, at most, that industrial production might soon stop falling. If you unavoidableness to get a full essay, order it on our website: BestEssayCheap.com

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