these slides are helpful for the graduate students .. i am also a graduate student my name is arslan tariq

1. Impact of 9/11 on economy

2. The Terrorist Attacks of 9/11
Agenda:
1) The Events of 9/11
2) The Psychological Impact
3) The Economic Impact
4) Recommendations and Conclusion

3. 1. The Events of 9/11

4. On a beautiful, clear day in September . . .
• Four planes hijacked; three flown into office building
• NYC attacks (2nd
plane crash) shown on live television; American attention
riveted; other tv shows replaced by 9/11 coverage
• All airplanes grounded; schools closed; sports cancelled
• WTC towers collapse, shown on live television
• Close coverage of whereabouts of Pres. Bush, other national leaders
• Lots of commentary and questions; few informed answers; lots of emotion,
Congressional Representatives spontaneously singing patriotic songs on the
steps of Capitol Hill
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1. The Events of 9/11

5. 2. The Psychological Impact of 9/11

6. Post Traumatic Stress Disorder
• Individuals who have been exposed to a traumatic event may experience at
least one recurrent symptom related to the event (such as intrusive, repeated
recollections or dreams of the event)
• Persistently avoids people, activities or places associated with the event
• Cannot recall important aspects of the trauma
• Shows disinterest in their usual daily activities and a sense of foreboding
about the future
• Hyper arousal (difficulty in falling or staying asleep, outbursts of anger, hyper
vigilance, an inability to concentrate, or exaggerated startle responses)
• May lead to significant impairment in social, occupational or other important
areas of the individual’s life
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2. The Psychological Impact

7. Common Themes in the Research on 9/11 Psychological Impact
• Living closer to the attack scene, direct personal loss, and children were
more likely to exhibit symptoms of PTSD
• Sadness was the most frequent reaction among New Yorkers, followed by
anxiety and fear
• Almost 20% of Americans across the country reported symptoms of distress
• constant news coverage, replays of video footage showing the second
plane hitting the World Trade Center, helped all Americans feel closer to
the event
• Americans did not withdraw from others
• Stress and uncertainty produces social behaviors: people seek out others,
perhaps to enhance social support, or to help to affirm one’s cultural view
of the world and the threat (Brandon & Silke)
• Increased participation in religious services, memorials, vigils
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2. The Psychological Impact

8. 9/11 Towers of Light Tribute

9. 3. The Economic Impact of 9/11

10. Confusion/Disagreement on Total Economic Impact
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3. The Economic Impact
• NY City Economic Impact
– “Total Loss $83 billion”
(NYC partnership & Chamber of
Commerce: Nov 2001)
– “Total Cost $54 billion”
(NY Governor: Oct 2001)
– “WTC Replacement Cost &
Cleanup $25~29 billion”
(FEB NY: April 2002)
– “Total Cost $83 billion (quoting
NYCP-COC) but $67 billion covered
by Insurance
(US GAO: May 2002)
• NY City Jobs Lost
– 108,500, 115,300, 105,200,
125,000, 84,000, 78,200,
129,000….
• NY State Jobs Lost
– “99,000 in 2001, 78,000 in 2002,
77,000 in 2003”
(NYS Senate Finance Committee:
DRI-WEFA: January 2002)
– “Resulted at peak loss of 78,200”
(DRI-WEFA: March 2002)
– “50,000 immediately, 70,000 in 4th
Quarter” “Much of this loss is likely
linked to WTC attack”
(FEB NY: April 2002)

11. Immediate and Short-Term Economic Impacts
• Financial Sector
• 40% of WTC casualties
• NYSE, NYME closed
• Aviation Sector
• planes grounded for a week or more
• 20% drop in passengers
• 100,000 jobs lost; several airlines went bankrupt
• Insurance Sector
• loss of life and property estimated at $40-$50 billion
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3. The Economic Impact

12. Immediate and Short-Term Economic Impacts
• Other industries were also badly affected, such as hotels,
tourism, automobile rentals, travel agents, and civilian aircraft
manufactures.
• Hotels reported higher vacancy rates and employment in the
sector as a whole fell by 58,000 (about 3%) in October and
November, 2001
• Nearly 18,000 businesses were dislocated, disrupted or
destroyed by the attacks
• Also, over 300 firefighters and nearly 100 policeman were killed
while trying to evacuate the World Trade Center before it
collapsed
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3. The Economic Impact

13. Longer-Term Economic Impacts
• Federal Reserve cut interest rates aggressively
• Special financing incentives offered by the automobile
companies led to record motor vehicle sales for October 2001
• Securities market was only closed for four days, opening again
after the telecommunications network in lower Manhattan
became operational.
• Stock market re-opened on September 17th
; within 19 trading
days, the S&P 500 index had bounced back to its pre-
September 11th level
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3. The Economic Impact

14. Longer-Term Economic Impacts
• New York City lost a significant amount of its office space and a
number of businesses ceased to exist.
• Close to 200,000 jobs were destroyed or relocated to other
cities
• 34.5 million square feet of office space lost
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3. The Economic Impact

15. The WTC burning… The twin towers collapsed…

16. Longer-Term Economic Impacts
• City-wide impact; airports and midtown hotels not just south of Canal Street
• Low-income workers bore the brunt (60%)
• People of color and immigrants (56%) hard hit
• Chinatown, “economic ground zero”, and other poor communities heavily
affected
• Insurance costs have risen on average 33% since 2001
• Diversion of resources and capacity toward security-related products and
services
• Short-term direct impacts were not as significant as the financial costs of the
long-term response that is still underway
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3. The Economic Impact

17. Bottom Line
• 9/11 events inflicted severe and immediate physical impacts to all
businesses, government offices, and other organizations located in and
around the WTC complex.
• This event involved dead, injured, missing, physically displaced and
traumatized employees, losses of data, information, and institutional
knowledge, and an unprecedented uncertainty in market behavior
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3. The Economic Impact

18. 4. Recommendations and Conclusion

19. Provide New Forms of Public Education
• There is much that could be done to educate the public at large about the
true nature of the terrorist threat
• Al Qaeda and affiliate terrorist groups seek to attack the United States
because of “our values” or “our way of life”
• Rather, they have a strategy and goals they are trying to achieve
• “The settlement of this overburdened account will indeed be heavy. We will
also aim to continue, by permission of Allah, the destruction of the American
economy.” - Ayman Al-Zawahiri (6 October, 2002)
• Educate the public about the root conditions and facilitators of terrorism
• Also, need more education about what average citizens can do to help foster
resilience in our communities
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4. Recommendations and Conclusion

20. Build Social Capital and Strengthen Social Networks
• Good relationships with close family members, friends, or others are
important. Accepting help and support from those who care about you and
will listen to you strengthens resilience.
• It is a mistake to rely solely on the government to deal with the immediate
impact of terrorist attacks. Community empowerment must play a prominent
role in any national resilience strategy.
• For example, the government could provide tax breaks and other incentives
to individuals and families who join any number of local organizations and
participate in community-building.
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4. Recommendations and Conclusion

21. Promote Greater Coordination
• Several reports have highlighted a lack of intelligence sharing and
organizational cooperation that exists throughout many federal and state
agencies.
• We must break down the barriers to interagency cooperation—like
organizational culture, differing technologies, turf wars, personality clashes
and parochial agendas.
• Agencies at the federal, state and local levels need to be able to
communicate effectively;
• 5 years after 9/11, the NYPD and FDNY still do not have common frequencies and
protocols for communication
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4. Recommendations and Conclusion

22. Thank You ….!!!!