Obviously, the attack of September 11th damaged the US's economy. There was a loss in 0.2 percent of its total revenue, or its total income, but America is recovering suprisingly quickly. Because of the attacks, there was an increase in unemployment, less capital investing, and also less spending. This is no surprise though-people couldn't spend money or go work when they were in such shock and disbelief.
On September 10th, a day before the attacks, the economic forecast for US growth was 1.6 percent. Then about a month after the attacks, by November 12 this number dropped to a low 1.1 and an even lower 0.7 percent. Then, in June of 2002, the number shot up to 2.7 percent, symbolizing great recovery. After the US's economy was damaged, other economies were also damaged because of the influence of the United States on global demand. Therefore, it slightly hurt global economies around the world as well, but the US did recover.
The economy recovered as a result of many things. American companies responded to the attacks by lowering prices drastically, especially for cars, so slowly people began to spend money. Then the Federal Reserve also tried to help by cutting interest rates dramatically. This helped to restart the housing market. Much money was gotten from the capital gains and savings by refinancing $1.1 trillion of mortgages in the year of 2001 and this ultimately helped the losses in the US economy. With taxes cut and people willing to spend money came a problem. It turned a $127 billion surplus into a $160 billion deficit, and this showed the US that taxes and prices couldn't be slashed so dramatically in the future. There were Predictions about this hurting US later on, but for now it helped people end the abandonment they had against spending, which was really important.
After September 11th, most thought the attack would stop globalization and the increase in security for transportation would raise the cost as well but the government came to America's rescue. They had the "Daha" trade negotiations which they insured would be successful at launching more global trade and a new round. Also the "fast track trade" bill was approved so that the perisdent would be able to make trade agreements without the legislative intruding.
The events that took place on September 11th also helped America create a new alliance with Russia. Then, instead of arguing over Bush creataing a new anti-missle (because of the Cold war) Russia tried to help the US and be a global energy supplier.
In conclusion, September 11th did shock the nation by the events, but with the firms and government's help, people started to spend once again and help everything get back on track. Many think that an attack like this can very easily happen again, and nobody knows how it will affect the economy until it actually occurs, but Americans have survived and they will most probably survive these attacks again.
