Paris and 911 Terrorist Attacks Essay Example

leading to a combined death count of 2974, surpassing the toll at Pearl Harbor in December 1941. This figure includes 2600 people at the World Trade Center, one hundred twenty-five at the Pentagon, and two hundred and fifty-six on the four airplanes (Pyszczynski, Solomon, & Greenberg, 2003).

During the 2001 recession, the stock market closed for four consecutive business days, which was the first time since the Great Depression that such a prolonged halt occurred. In 1933, markets also closed for two days during a bank holiday to prevent a rush on banks.

In the aftermath of the 9/11 attacks, which worsened an ongoing collapse starting in March 2001, there was a significant decline in the Dow Jones Industrial Average. It fell by seven percent and led to a loss of 6117.78 points.

The economy initially shrank by one percent in the first quarter of 2001 but recovered with three percent growth in the second quarter. However, due to the attacks, there was another contraction of 1.1 percent in the third quarter, further worsening the recession (Pyszczynski et al., 2003).

The Y2K scare in 2001 led to a recession, which caused a boom and subsequent burst in internet commerce. The recession ended in November 2001, but its effects continued to impact the Dow throughout the following year. On October 9, 2002, the Dow reached its lowest point at 7286.27, marking a thirty-eight percent decrease from its peak. Determining if the bull market had recovered was challenging until the Dow reached a higher low of 7524.06 in 2003.

The unemployment rate experienced a significant increase of six percent due to the recession. Consequently, President Bush declared a comprehensive war on terror,

emphasizing its diverse aspects, and implemented decisive actions to carry out this campaign.

Bush initiated the Afghan war with the goal of seeking justice for Osama and enhancing security. In addition, he was the head of al-Qaida, the organization accountable for the 9/11 assaults. The deployment of troops to Afghanistan for homeland security reasons incurred expenses. Moreover, Bush asserted that the CIA had discovered weapons of mass destruction in Iraq, prompting the decision to dispatch troops there as well. In general, Bush's tenure witnessed substantial expenditures dedicated to advancing homeland security. President Obama also faced additional costs due to the persistent war on terror.

Approximately 857 billion dollars has been allocated to the war on terror during his term as head (Landau, Solomon, Greenberg, Cohen, Pyszczynski, Arndt, ; Cook, 2004). This amount is roughly equal to what Bush spent when he initiated the war on terror. The estimated total cost of the war on terror is around 1.8 trillion dollars. Furthermore, the debt crisis caused by the 9/11 attacks was another negative consequence. The increased defense spending resulting from these attacks had a significant economic impact and contributed to the United States' debt crisis. If it wasn't for the war on terror, the liability would be less than $16.2 trillion or even lower.

The fight against terrorism caused a decline in funding for stimulus measures targeting the 2008 financial crisis, leading to fewer job opportunities and lower tax revenue. This further worsened the liability. Moreover, this reduced funding also affected infrastructure maintenance and replacement. In 2011, Republicans, including the Tea Party, demanded an increase in the debt ceiling due to concerns about the growing liability. Despite reducing military

expenditure, they advocated for imposing stringent limits on Medicare benefits. Consequently, Standard and Poor's downgraded the credit rating of the United States.

The terrorist incidents had a profound impact on Americans and their perception of security within the United States. The negative consequences were particularly felt by the airline industry, which experienced a significant decrease in customer demand. Following the 9/11 attacks, airports were shut down by the government, resulting in numerous flight cancellations for which airlines were held responsible. Even after reopening, customers remained hesitant about air travel, leading to an immediate thirty percent decline in demand. Furthermore, many companies temporarily suspended non-essential travel for their customers, further impacting the profitable business travel segment of the airline industry.

In 2001, the United States confronted Islamic terrorists on September 11th, which had significant repercussions for the entire commercial society. The stock market crashed and various sectors of the economy were already experiencing a moderate collapse. The terrorist attacks worsened the devastation in the struggling commercial society. Nevertheless, remarkably, trade and commerce managed to bounce back relatively quickly. By year-end, there was a rise of around one percent in product volume compared to the previous year, surpassing ten billion dollars. This indicated that the economy had not suffered critical damage from the 9-11 attacks. However, small businesses and consumer confidence were also negatively impacted.

The small commercial sectors, especially those near the world trade center in lower Manhattan, experienced significant losses. Around 1800 small businesses were either destroyed or forced to close. In response to this situation, the government worked together with the Small Enterprises Administration and private sector organizations to provide mortgages and cash grants to affected businesses.

These efforts also extended to commerce at Reagan Airport in Manhattan and throughout the state (Landau, Solomon, Greenberg, Cohen, Pyszczynski, Arndt, & Cook, 2004).

PARIS ATTACK

The terror attack in France had a substantial psychological impact on individuals within the country and around the world. Moreover, there were noticeable economic and geopolitical consequences resulting from these attacks.

Indirect consequences resulted from the implementation of new air safety measures on November 11, 2001. The Transportation Safety Administration's renovation of airport procedures had both immediate and long-term effects on the industry. While the intensified airport security procedures did not directly impact airline performance, they did result in a noticeable portion of customers opting for alternative modes of transportation or choosing not to travel at all. A study conducted by Cornell University in 2007 found that central baggage screenings caused a six percent decline in customer volume overall, with the busiest airports experiencing a nine percent decrease. This amounted to approximately one billion dollars in losses for the airline industry (Malkin, Standaert, ; Yung, 2006). The tourism industry also underwent significant changes following the attacks.

France's tourism sector, which contributes 7% to the country's gross domestic product, has been adversely impacted by attacks. The primary consequence has been heightened security measures at French borders, causing significant delays in passport checks and luggage inspections. This situation has also affected cross-border trade for companies operating across Europe. To address the Paris attacks, several countries imposed stricter border regulations to restrict immigration from specific nations like Syria and Iraq. Additionally, Paris had to temporarily close its parks and tourist attractions, further damaging the economy. Consequently, the governments of the United Kingdom and United States issued

travel advisories for Paris, resulting in decreased tourist revenue from these nations.

U2, the Foo Troops, and Prince ignored concerts, even after public sites were reopened. Tourists did not rush back due to heightened anxiety. The bankruptcy and significant layoffs that followed had a significant impact. The week after the terrorist attacks, Congress passed a regulation establishing the Air Transportation Stabilization Board. This board was created to provide struggling airlines with up to ten billion dollars in mortgage support.

Regardless of the government-funded measure, several prominent French airlines, including Paris airways and other domestic carriers, filed for bankruptcy shortly after the terrorist attacks. These airlines, even the ones previously financially stable, had to renegotiate labor agreements and lay off a significant number of employees, like the 5000 workers laid off by France Airlines, due to extensive monetary losses resulting from low customer demand, abandoned flights, and increased spending on safety. Consequently, the business sector suffered a major blow. Gold prices surged from $215 to $287 per ounce as anxious stockholders sought security amidst the uncertainty.

Concerns over a reduction in oil imports from the Middle East caused a surge in petroleum prices. Nevertheless, the following week saw these prices revert to their pre-attack levels as there were no further attacks and petroleum deliveries to France remained unaffected. The insurance company dealt with claims arising from the attacks, although many companies had sufficient cash reserves to manage these liabilities. Furthermore, differing opinions emerged within the airline industry concerning the necessity of making modifications.

It is claimed that the financial consequences suffered by the airline industry as a result of the attacks merely expedited a planned reorganization within the institution. Several

airlines, including Paris airways, which went bankrupt after the terrorist incidents, already had ongoing financial issues before these events (Newton-Small, 2016). Other airlines had taken on excessive financial commitments during a period of improved finances, such as entering into large agreements and purchasing new aircraft. The decline in customer demand following the Paris attacks prompted airlines to renegotiate agreements and ground planes. Additionally, increased competition from low-cost airlines could have also had a long-term impact. Paris also made an effort to address rising healthcare expenses.

This is based on the fact that the charges incurred in Medicaid and Medicare deeply threatened budget.

References

• Pyszczynski, T., Solomon, S., ; Greenberg, J. (2003). In the wake of 9/11: Rising above the terror. American Psychological Association.
• Landau, M. J., Solomon, S., Greenberg, J., Cohen, F., Pyszczynski, T., Arndt, J., ... ; Cook, A. (2004). deliver us from evil: The effects of mortality salience and reminders of 9/11 on support for President George W. Bush.

The authors of the article "Personality and Social Psychology Bulletin" (volume 30, issue 9, pages 1136-1150) are Malkin, T. G., Standaert, F. X., Yung, M.

(2006). A comparative cost/security analysis of fault attack countermeasures. In Fault Diagnosis and Tolerance in Cryptography (pp. 159-172). Springer Berlin Heidelberg.

The article "The French Economy and the Impact of the Paris Attacks" was published on TIME.com in 2016. You can read it at http://time.com/4123827/paris-attacks-tourism. The article was retrieved on December 5, 2016.

Retrieved 5 December 2016, from https://www.thebalance.com/how-the-9-11-attacks-still-affect-the-economy-today-3305536

Retrieved 5 December 2016, from http://www.investopedia.com/financial-edge/0911/the-impact-of-september-11-on-business.aspx

Retrieved 5 December 2016, from http://money.cnn.com/2015/12/08/news/companies/air-france-paris