9/11 Economics

2 Pages 384 Words

As a direct result of the September 11th terrorists attacks the city of New York has suffered from staggering economic loses. The United States government, immediately, allocated 20 billion dollars towards the cleanup process, but the state authorities continue to calculate the astronomical absence of income suffered from the attacks, also. It is estimated that another 20 billon dollars will be needed to compensate the families of the deceased, and rebuilding New York Cities’ office of emergency management.
Lower Manhattan was quartered off from the rest of the city for the first three weeks after the incident to remove the debris and human remains. After this three week period, Downtown Manhattan, gradually, became accessible for the businesses and residents to return. The businesses and the residents of lower Manhattan returned to a chaotic environment. There was also a sharp decline in economic activity. Revenues from daily activity in Manhattan such as tourism, parking meters, and real estate were nonexistent. Officials are estimating the loss from unused parking meters and traffic fines to approximately be 1 million dollars a day.
The total to rebuild the area is calculated at fourteen million dollars. New York City is more likely to suffer the most long-lasting financial effects from falloffs from tourism and depleted personal and corporate tax revenues. The Giuliani Administration is enacting a plan to halt the downward transition through grants, bonds, and creative budgeting. That will free up to five hundred million dollars.
Outside of government aide, various funds have been set aside by the city to assist the victim’s families. Revenue accrued from a city bond are going to be used to rebuild businesses downtown. Institutional investors have contributed two billion dollars to the economic relief effort. The city bond, which was created on October 2nd, is biggest city bond ever totaling three hundred and eighty seve...