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Economics after 911: scrapbook


            Retail sales drop largest in 9 years.
             A plunge in retail sales in the United States has occurred since the September 11 terrorist attacks. But analysts are beginning to assert that the attacks, coupled with a long slowdown, portend more lasting changes in the U.S. economy for consumers, business and government.
             The Federal Government is spending more money on security and defense, hoping to patch up the frayed security net.
             This will cause the Companies to put more items in inventory because of the threat that supplies may be disrupted.
             But nevertheless, companies can return to leaner manufacturing systems only if the terrorism risk lessons. In the meantime, the globalization of markets would be slowed as terror threats curtail the free movement of goods.
             A $90 Billion Hole in N.Y.
             Many people have been forced out of their neighborhoods because of the September 11 terrorist attacks on the Pentagon and Twin Towers.
             Businesses are also suffering from this horrible event. Some businesses like banks are still without power so they can't work, and many other businesses were abandoned because the business was extremely slow.
             But likely, this event will cause winners and also cause many losers.
             Some of the premier names of American business were dislocated by the disaster. Firms like American Express Co. quickly grabbed as much space as they could, wherever they could.
             US industry slump longest for 50 years.
             United States has been running at its lowest capacity for at least the last 18 years. It has been suffering its biggest slump since the World War 2. .
             But the slump the September 11 terrorist attacks was painful to the economy. Many officials can't give the United States' citizens sure answers on if it will recover or stay at its current low standards.
             But if the extent of inflicted economical damage is unknown, they we won't know for sure if it will ever recover and pick back up. All we can do is pray for the best and hope it happens.


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