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Economics of War

Economics of War

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 Center as smaller

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