The Effect of 911 on United States and Its Relations with other Nations (Essay Sample)

Name
Instructor
Task
Date
The Effect of 911 on United States and Its Relations with other Nations
The September 11 events that occurred in U.S involved a series of four terrorist attacks that were launched by the Al-Qaeda Islamist group. In this attack, four hijacked passenger jets were used in bombing the World Trade Center in which both the North and South towers collapsed. In addition, the Pentagon House was also destroyed in the 911 attack. The attack resulted into a high impact on the U.S economy, legal Systems and its relations with other nations (Ken 368). Some of the nations whose relations with U.S were affected are Russia and China.
After the events of this attack, the U.S economy was affected negatively in several dimensions. Some of the dimensions affected were economic growth, stock market, consumer confidence and foreign direct investment. There was a negative stock reaction in relation to price. This corresponded to an average loss of $401 million in each firm on the firm capitalization. The U.S stock exchange had to take 13 days to recover from the losses it experienced. Economic growth was also affected considerably. The estimated losses were damages on private assets worth $14 billion and a damage of $1.5 billion for both the local and state businesses. In addition, the federal government experienced a loss of $0.7 billion. Besides, approximately 200, 000 jobs in New York City were destroyed (Anderson 494). These damages resulted into a drop in the economic growth, which took two years to recover. Consumer confidence level was also reduced by the attack. This level was established to be below the 5.1% level that existed prior to the 911 attack. However, this decline was accompanied by other factors such as the recession that began before the attack. The change was established to have dropped from 114.0 to 97.0 between the months of August and September in 2001. Further, both the budgetary allocations and the fiscal policies were also affected by the attack (Anderson 496). The expenditure on the military force that was employed to pursue the terrorist in Afghanistan increased. After the attack, the expenditure rose by a double-digit percentage. Besides the military funding, there was an increase of the budgetary allocations to enhance protection on the U.S boundaries and national security.
United States’ relations with other nations such as China and Russia were also influenced by the 911 attack. Both the United States and Russia developed strong emotional links after the attack. This is because the two nations felt that they had a common challenge to handle together. Russia had also experienced a number of terrorist attacks between 1999 and 2001. Some of these attacks included the bombings at Buinaksk, Moscow and Volgodonsk. Russia, therefore, felt that it was on the same plane with U.S and ...