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The choice to bomb the World Trade Center was more than symbolic. The collapse of the towers has coincided with an already slowing global economy and was probably intended to cause as much economic as physical harm. The crisis will have deep economic repercussions in a number of areas; while some parts of the economy will be hurt, other sectors may actually benefit, and it is possible that increased defense spending could stimulate the slowing economy in the short run. A global economy requires openness and speed, whereas increased security often entails putting up barriers and walls. The war on terrorism will also dramatically increase security costs at every level. America's distant global commitments may become enormously expensive and draining. The war on terrorism will decrease consumer spending, the stock market, exchange rates, airline costs, and immigration rates. Furthermore, how will a slowing global economy respond and deteriorate the slowing American economy?

The terrorist attacks on the World Trade Center will cost New York’s economy up to 105 billion dollars and 115,000 jobs. Allen Hevesi, the city comptroller, did a recent report of the breakdown of some costs: Rebuilding the World Trade Ce

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8 percent in the fourth, which made it seem possible that the current disruptions could push GDP growth into retrenchment and potentially recession. ” The New York Times did a breakdown of the economic costs for airlines.

The WTC attacks have increased the spending of defense buildup. For instance, Guardian Unlimited reports, “ As it released its first estimate of the size of claims it expects to receive, Lloyd’s, which insures buildings, planes and even film stars, moved to make speculation that it would collapse from the financial burden of paying out claims of 1. 7% in 1944 during World War II and was only 20.

The cost of disasters has been said to be very expensive. Additional spending on defense expenditure is suggested to be of the order of $18 billion this year, and a massive $60 billion next year. Gary Gentile, a Business Writer writes “Unlike previous conflicts, which relied heavily tanks, fighter jets and ships, a prolonged campaign against terrorists will place increased emphasis on an electronic battlefield that will require sensors and software.

A recent article on the Internet titled, “ Attack on America”, reported that the Federal Reserve to push a key interest rate to its lowest level in four decades in an effort to get consumers spending again. These latter guarantees necessarily imply a potentially huge contingent liability and not without their critics. Underground installations will systematically need to be assessed, repaired, redesigned, replaced and re-routed as the clean up and reconstruction continues at least until 2004. The long-term impact of the attacks depends on how quickly the nation’s economy recover and the decisions on where to locate by the companies. Winning the JSF contract would have restored 6,000 jobs in Seattle and St. Bush to persuade the United States not to abandon Mexico after having earlier applauded its democratic transition and economic policies. On the contrary, governments have used each such opportunity to increase their control on the productive sector, proving that indeed, war is the health of the state.

Approximate Word count = 3207
Approximate Pages = 13 (250 words per page double spaced)

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