Economic effects of 9/11

11 September 2008 1 views No Comment

As we commemorate 9/11 today and remember all that has happened since that day 7 years ago, I thought I’d do something different in terms of commentary on the day and highlight the economic impact of the day. I’d urge you to read the Congressional Research Service’s Economic Effects of 9/11 white paper. It’s a bit dense, economically, but provides some retrospective on the government’s actions.

Putting aside the wars overseas and their significant costs, the 9/11 attackers also caused our government to act recklessly with regard to our financial policies. The end result was that the government kept interest rates artificially low for far too long following 9/11, creating the housing bubble and mortgage mess that is now unraveling, impacting all aspects of consumer and commercial lending.

7 years after 9/11, Osama Bin Laden’s attack on the United States is still having effects. Today it’s students who can’t get private student loans, lenders who can’t issue federal student loans, and consumers whose house values are dropping sharply.

As we move forward, as we commemorate the day, we also must take some time to reflect on what we want of our leaders and our government. No matter your political beliefs or what parties or causes you support, please ask for vision of your elected and appointed leaders. Had the government, instead of panicking on 9/11 and rushing to appear as if it were doing something, anything, taken a step back and been more thoughtful in its economic approach to the attacks, we might not still be victimized by them 7 years later.

For all those who lost loved ones on 9/11, my sympathies and condolences remain firm and unwavering.

For everyone else, especially as we’re in an election cycle right now, please shelve all the surface political spin and bluster and dig into the economics of the people you’re about to elect. It’s vital that we elect public officials at every level of government who have vision, leadership, and a strong understanding of how money works in a capitalist society.

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