Page 63 - Heavenly Signs III by Mel Gable

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Economic Aftermath

In New York City, about 430,000 job-months and 2.8 billion dollars in wages were lost in the three months after
the attacks. The economic effects were mainly on the economy's export sectors. New York City's GDP was
estimated to have declined by 27.3 billion dollars for the last three months of 2001 and all of 2002. The U.S.
federal government provided 11.2 billion dollars in immediate assistance to the government of New York City in
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September 2001 and 10.5 billion dollars in early 2002 for economic development and infrastructure needs.
North American air space was closed for several days after the attacks and air travel decreased upon its
reopening. It resulted in a nearly 20% cutback in air travel capacity, and exacerbating financial problems in the
struggling U.S. airline industry. The September 11 attacks also led indirectly to the U.S. wars in Afghanistan and
Iraq, as well as additional homeland security spending which have totaled at least 5 trillion dollars.

Also hurt were small businesses in Lower Manhattan near the World Trade Center 18,000 business which were
destroyed or displaced. This resulted in lost jobs and their consequent wages. Assistance was provided by Small
Business Administration loans, federal government Community Development Block Grants, and Economic
Injury Disaster Loans. The building space of 31,900,000 square feet of Lower Manhattan office space was
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damaged or destroyed.
Many wondered whether these jobs would return and if the damaged tax base would recover. Studies of the
economic effects of 9/11 show the Manhattan office real-estate market and office employment were less affected
than first feared. This was because of the financial services industry's need for face-to-face interaction.

National Debt 2001 – 2008:
U.S. Billions of Dollars

Increase in National Debt

Total Budget Deficit

Calculated from:
http://www.treasurydirect.gov/govt/reports
/pd/histdebt/histdebt_histo5.htm

U.S. Deficit and Debt Increase (U.S. Treasury Dept.)

The attacks had a significant economic impact on United States and world markets. The stock exchanges did not
open on September 11 and remained closed until September 17. Reopening, the Dow Jones Industrial Average
(DJIA) fell 684 points, or 7.1%, to 8921, a record-setting one-day point decline. By the end of the week, the
DJIA had fallen 1,369.7 points (14.3%), at the time its largest one-week point drop in history. U.S. stocks lost 1.4
trillion dollars in valuation for the week. Total stock losses of 5 trillion dollars have been estimated for 2001.
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94 Makinen, Gail (September 27, 2002). "The Economic Effects of 9/11: A Retrospective Assessment".

95 Hensell, Lesley (December 14, 2001). "Tough Times Loom For Manhattan Commercial Market".

96 Barnhart, Bill (September 17, 2001). "Markets reopen, plunge". Chicago Tribune.