Eleven years after 9/11 America is weaker not stronger. Discuss. 6th December 2012. International Political Economy (BUS4005)
Contents Page number
2.2 Consumer Sentiment5
2.3Airline and Insurance industry5
3.1Cost of War6
3.3Annual Federal Budget Deficit7
3.4Balance of Trade8
4.International Relations 8
4.1The United Kingdom 8
4.3The Middle East 9
5.US Politics 10
5.1Presidency Approval Rating 10
5.2Iraqi War 10
5.3PATRIOT Act 11
5.4Conspiracy Theories 12
6.1Sense of Threat 13
6.2Heightened Paranoia 14
6.3Effect of War 14
The purpose of this essay is to discuss the idea that eleven years after 9/11, America is weaker not stronger.
I will analyse this issue from an international political economic perspective. The effects of this event are so vast that using the ideas of any single academic discipline will not suffice. It calls for an interdisciplinary, multidimensional analysis. With this in mind the aspects that I will take into account for my study are microeconomics, macroeconomics, U.S politics, international relations and sociology. I will account how the attacks negatively impacted these areas, thus making America weaker.
On September 8th 2011, President Barack Obama addressed the nation regarding the progress of America since 9/11. He announced:
Our character as a nation has not changed...The past decade has shown America does not give in to fear...our open markets still provide innovators with the chance to create, our citizens are still free to speak their minds, and our souls are still enriched in our churches and temples, our synagogues and mosques...Nothing can break the will of a truly United States of America
While this speech was uplifting and inspirational, I simply do not agree with it. I will now outline my reasoning for taking this opposing stance.
I will begin with the microeconomic weakening of America since 9/11. Microeconomics deals with the supply and demand for goods and services on a small scale, in other words, by individuals and businesses.
2.1 New York
The businesses in the vicinity of the World Trade Centre in Lower Manhattan suffered major losses. According to Davis (2011) “18,000 small businesses were shut down or destroyed”. The closure of such a vast amount of small businesses in a small area has a massive effect on supply to local customers and of course to the owners of these businesses who became out of job and out of pocket. Not only were the initial businesses destroyed but existing businesses “shunned the area [and] hundreds, if not thousands, of residents moved away” (Fox News, 2012). The Gross City Product of New York was estimated to have been reduced by approximately “$27.3 billion over the last 3 months of 2001 and all of 2002” (Makinen, 2002). As Howard Chernik (2006) observed in the National Tax Journal:
Economic losses quickly spread from the immediate site of the attack to key New York City industries, including travel and tourism. Between 75,000 and 100,000 jobs were lost in New York City during the fourth quarter of 2001 as an immediate result of the attack.
2.2 Consumer Sentiment
The Index of Consumer Sentiment (a research study undertaken by the University of Michigan) showed a decrease in the “mood of consumers and their proclivity to buy various large and small goods and services” (Davis, 2011) in September 2011. This was “the biggest one-month decline since October 1990” (CNN, 2001). This illustrates a clear decrease in consumer demand for goods and services.
2.3 Airline and insurance industry
The airline industry suffered greatly from the decrease in demand....