Effects on septeber 11 2001 Essay Example | Topics and Well Written Essays - 500 words

Effects on septeber 11 2001 - canvass ExampleThe modest effect was due to the Federal Reserves liquidity support to the fiscal community. One of the immediate effects of the attack though, is the downturn of the stock market.One lasting effect of the 9/11 tragedy is the increase in government funding in making production, distribution, finance and chat more(prenominal) secure in the US. More resources will be used for security rather than enhancing fecund capacity (Makinen,7).In the aspect of world economies, additional security layers were placed in transporting goods which made it more costly in terms of distribution. There were greater impediments to the free movement of goods, services and capital (Makinen, 8). This as well as resulted in a slowdown in the growth of productivity.The effect of the terrorists attack was greatly felt in the tourism, airline and aviation and policy industries. Even before 9/11, the airline industry was already experiencing fiscal troubles. The a ttack compounded the financial woes of several airline companies but the Federal government responded with an aid sheaf (Makinen, 9). Air travel dropped tremendously as an aftermath of the attack thus, there were several lay-offs in the industry.The insurance industry is one of the most affected industry by the 9/11 attack. The loss of livelihood and property gave rise to the largest property/casualty claim in history, estimated at US$40 jillion (Makinen, 9). Although the insurance companies were able to cover the claims, they became reluctant in providing coverage against future terrorists attack, not to mention that they do not have ample experience in deciding on the insurance rates and calculate the reserves for it.Before the attack, the agriculture and food sector were already recovering from low prices and slow exports. long time after the attack there were some setbacks in the economy because of a stop in the commodities