Effects of 9/11 on American Economy Essay

625 Words3 Pages
The September 11 attacks were set of four terrorist attacks controlled by al-Qaeda, an Islamic terrorist group. On September 11, 2001, four aircrafts were hijacked by the terrorists; two of the planes hit Twin towers in New York, third hit the Pentagon and the fourth one crashed into a field near Shanksville, Pennsylvania (“9/11 Attacks”). The September 11 attacks had several long-term negative effects that include Social effects, Psychological effects, Physical health effects, Economic effects and many more. But of all those effects, Economic effects were the most suffered ones. The 9/11 attacks triggered the devastation of American economy (Miley). Although it has been 12 years since the episode and America has recovered a lot, American…show more content…
Although the gas prices are steady between $3 and $4, it is $2 approximately more than it was before 9/11 attacks (Miley). Housing in America also had a significant impact due to 9/11 attacks. The average price for a house in America in 2001 was $156,600. The home ownership rate during the first half of the year was 67.5%; meaning that 67.5% of the population owned a house. As Miley explains, “The fed funds rate [is] the interest that banks charge each other for short-term loans [and it] influences rates on other loans, such as mortgages.” The Federal Reserve had a target federal funds rate of 6.5% for 2001. Four fed rate cuts were made after 9/11 and the fed funds rate was 1.75% in the end of 2001. Housing prices rose rapidly following the terrorist attacks. The median home price was $221,900 in the year 2006. From 2000 to 2006, housing prices escalated an annual rate at 8.26%; while in the 1990s, the annual increase in housing rate was 4.22% (Miley).
Unemployment rate also had bad effect in America due to 9/11. The unemployment rate was just 4.9% in 2001 before the 9/11 attacks. But after the attacks, approximately 600,000 jobs were lost. Of those, 226,000 jobs were in travel and tourism. Not only that but also 1,100 businesses were disturbed at the World Trade Center. The unemployment rate was 5.7% in the end of the year (Miley). In 2011, the unemployment rate was 9.1% and as of October 2013,
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