Unsurprisingly, we’re still feeling the long-term economic effects of the 9/11 attacks. It’s safe to say that although it occurred over 15 years ago, this tragedy left its mark on the marketplace. You may even be feeling the after-effects yourself and don’t realize it.
War on terror equals debt
In September 2001, Bush kickstarted the “War on Terror” resulting in both the war in Afghanistan and then later the Iraq war in 2003. Needless to say, neither of these campaigns were cheap. By the end of Bush’s remaining two terms, over $1.164 trillion, was spent on these missions!
Obama continued Bush’s legacy in pursuing Osama bin Laden and consequently spent $807 billion in the process, and Trump’s estimated he’d pay roughly $156 billion to further the “War on Terror.” This totals to a whopping $2.126 trillion.
In 2008, the financial crisis hit. The money spent on the War on Terror meant there weren’t the funds to fuel programs to generate jobs. Getting people working would have gradually nurtured the economy back to health. With so many people out of work, fewer tax dollars were made, which caused our national debt to rise. In New York alone, they suffered a whopping $3.5 billion tax decline during the first two years after the attacks.
In 2013, Congress refused to raise debt limitations, which led to the government enforcing strict austerity measures. Consequently, economic growth didn’t happen as quickly, and the debt crisis continued to prevail.
More on the debt crisis
Experts predict the outstanding amount would be $19 trillion (or less), which is better than the current $22.7 trillion of debt owed.