The Economic Effect of 9/11

By Daniyal Malik and Saad Khan

BackgroundOn September 11th, 2001, two American airplanes each crashed into

one of the Twin Towers of the World Trade Centre, New York City.

Almost 3,000 people lost their lives on that tragic day.

Death and destruction

• 2,600 died at the World Trade Centre• 125 died in the Pentagon• 256 died on the four planes• The total death toll of 2,975 surpassed that

of Pearl Harbour in December 1941

Key Statistics• 500,000 NYC jobs lost (3 months)

• $3 billion lost in wages to workers (3 months)

• $25 billion given in aid to NYC

• $30 billion decline in NYC GDP (15 months)

• $40 billion insurance losses

• Housing prices: Post-9/11- $156,600 2011- $173,100

• Air Travel: Post-9/11- $34.9 million 2011- $63.8 million

• Oil and gas: Post-9/11- $1.53 per gallon 2011- $3.56 per gallon

• Unemployment: Post-9/11- 4.9% 2011- 9.11%

DOW JONES INDUSTRIAL AVERAGE

Cost to Airline Industry

United Airlines- $30 to $18 (40% decline)

American Airlines- $30 to $18 (40% decline)

• $22 billion revenue-loss (1)

• $15 billion granted to industry (1)

• $55 billion revenue-loss (10)

• 160,000 jobs lost (10)

• The U.S. government provided $11.2 billion in immediate assistance to the Government of New York City in September 2001, and $10.5 billion in early 2002 for economic development and infrastructure needs

• Government offered to subsidies nearly all businesses going bankrupt at the time

• By the end of the year, the U.S. Gross Domestic Product (GDP had increased over the previous year about 1%, to more than $10 trillion, demonstrating that the economy had not been critically hurt by the 9/11 attacks. In fact, according to the Bureau of Economic Analysis (BEA), GDP increased 2.7% in the fourth quarter of 2001

Economic Recovery

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