|
| |
Assessing the Economic Impact of September 11
From: University of Chicago
| By:
Gary Becker |
EDITOR'S INTRODUCTION |
 Corporate executives and market watchers have cited "the post-September 11 climate" as a reason for layoffs, poor corporate earnings and other financial setbacks. But have the attacks and their aftermath had any long-term effect on the US economy? Not according to Gary Becker.
Becker, professor of economics at the University of Chicago and a 1992 Nobel laureate, says that the attacks may have had a profound effect on the American psyche, but their effect on gross domestic product and other economic indicators was negligible. He sees only certain sectors of the economy affected in the short term, and considers what it would take for the attacks and the war on terrorism to have wider repercussions. |
|
|
|
Becker assesses his October 2001 prediction that the September 11 attacks would not have a long-term effect on the US economy.
|
|
|
|
|
|
In Becker's view, long-term impact would only be felt after a series of terrorist strikes.
|
|
|
|
|
|
Becker explains that the airline industry has been hit hardest, with traditional powers suffering from the slump in air travel.
|
|
|
|
|
|
Becker scoffs at companies that have cited September 11 as a reason for corporate layoffs.
|
|
|
|
|
|
Government spending on increased security at nuclear plants and other facilities has not had a major impact on the economy, Becker says.
|
|
|
|
|
|
Becker opposes the government takeover of airport security, believing private companies can do the job better and respond to consumer concerns.
|
|
|
|
|
|
Becker weighs the pros and cons of tighter immigration policy on the United States.
|
|
|
|
|
|
Individuals in other countries, not whole economies, are most affected by stricter immigration policies, Becker says.
|
|
|
|
|
|
Can you quantify the sense that we're not as safe as we used to be? Becker answers and points to the overall strength of the economy.
|
|
|
|
|
|
Are the attacks more comparable to a natural disaster than a war? Becker discusses the hidden costs of preventing future attacks.
|
|
|
|
| |
