QUOTE(Erasmussimo)
I did provide the source. It's right there in the sentence you quote. Go back and re-read my posting. In the sentence "Here's one made in August 2002", notice that the word "one" is underlined. That means that it's a hyperlink. If you click on it, it will take you to the source.
Having read the source, what do you think of the costs it outlines? Do you think that it's too high or too low?
I know how hyperlinks work thanks...I just did not recognize that source..you offered several.. as being the source of your 400 billion because it actually supports the theory of a much higher number. I was just curious how you...when many economists claim that to come up with one (single) number for all the damage incurred by 9/11 is impossible...did the impossible. I already told you my guess...I guess it is much higher than 400 billion.
QUOTE(Erasmussimo)
In terms of policymaking, how does that make terrorism different from any other tragedy? Let's just suppose that on the morning of 9/11, due to some truly weird computer error, two jets flew into the World Trade Center and brought both towers crashing down. Again, I emphasize, we're supposing that it's a completely innocent accident, but with exactly the same physical results. Our policy countermeasures in this case would be different, but would they be any less thorough or careful? Would we truly say that, because this was an accident, it doesn't deserve as much concern as if it were deliberate?
Because when it is a terrorist threat it is not accidental and the markets, the investors, the consumers, the governments and all the other pieces of the machinery worldwide don't view each of these examples as having equal risks.
Computer error of what kind? Don't you think such an accident would be again more localized and singularized to one particular industry or even nation? 9/11 was just a event in a series of events...not the one and only event in and of itself.
It is much easier for the government to react to a catastrophe as the one you have exemplified and make efforts to contain it's effects and gain confidence that it will not occur again. This is just a glorified use of your boating shark accidents example..it is something that is much more easily containable and risk preventable..terrorism's effects are not.
QUOTE(Erasmussimo)
So your concern is with the effect of the terrorism on consumer confidence. Then provide us with some data to make your case. The problem is that the recession started before 9/11, and it will be very difficult to extract the effect of 9/11 on consumer confidence from the effect of the recession. Yes, there was a 17-point drop (click on this link right HERE to see a short summary of some drops in consumer confidence). But in the larger scheme of things, it doesn't appear to have had any long-term effects.
No..I think it is quite obvious that my only concern is not only with CCI. I just didn't think it made much sense for you to belittle it and treat it as if it was something so trivial. I am not the one who is making big claims that the effects of 9/11 or any other terrorist event is singular to only the deaths that incurred or the direct physical damage or loss of property. That isn't my argument nor is it that only CCI should be considered on top of that. I have asked you and others to consider all of the financial effects...from FDI, CCI, trade, savings and consumption, investments, stock markets, and just basic overall global economic growth.
And it doesn't have to have long term effect.
The latest terrorists attacks in London have plunged CCI yet again...obviously it is
one of the factors and much like your article asserts that we see historical dips in CCI as results of our run up to our nation's engagement in wars..terrorist activity has the same effect.
Anything that can have such an immediate and detrimental effect on CCI is what I would believe to be something we could consider as a negative influence. And in keeping with the theme of my argument this dip or loss in confidence is not something I believe is contained or localized.
But you want other people to make my argument for me...
In the business community, there seems to be less concern about a disruption to day-to-day operations than the potential impact on consumer confidence. Dick Parsons, chief executive of Time Warner, recently expressed concern that the attacks could threaten consumer spending worldwide. source Consumer confidence over the past month slid to a two-year low, and economists say terrorism fears rekindled by the London bombings probably played a large role in the decline.
Economists believe high energy prices weighed on confidence in July. But they thought the London terror attack probably was a bigger factor.
"Terrorism reared its ugly head and it was a downer in terms of the consumer psyche," said Ken Mayland of ClearView Economics.
source QUOTE(Erasmussimo)
You can find complete information on FDI HERE. Worldwide, FDI flow peaked in 2000 and began to fall in 2001 -- almost certainly as a result of recession following the collapse of the stock market
Almost certainly the result of one (singular) factor? How is that possible? In a global market if one sector or region is doing poorly why not just move your monies around to somewhere else? A drop in FDI
worldwide is indicative of one thing..a change in the flux in investments over wealth. Why? I am sure there are many reasons for this..but I am also sure that terrorism will unquestionably be in the top 3.
One of the most influential deterrents to the US economy making a full recovery has been the lack of incoming FDI. It has not regained since it's fall in 2001
worldwide like many..even the UNCTAD.. hoped it would. Read what they kept predicting on that site you linked to..we will recover FDI loss in 2002 and continue it's growth for the next 3 yrs. Well it fell even farther..so they revised their predictions for 2004 and it made a measly 6% worldwide gain. Which is good I guess... but still low.
Have you heard of the The Global Terrorism Index ? It currently ranks the US as having the fourth largest risk for a terrorist event. This little publication is compiled and published by a group that calls themselves
The World Markets Research Centre Why that name and this index? It is because terrorist events have become detrimental to not only our physical lives, or our properties, or even our way of life..they also undermine our means of life.
QUOTE(Erasmussimo)
Actually, there is a significant economic factor that you have not mentioned: the price of oil. Experts talk about what they sometimes call "the terrorism surcharge", which they estimate to be about $10/bbl. It reflects the increased price of oil because of uncertainties about the supply of oil. However, it is difficult to assign this specifically to the actions of terrorists, as it jumped the most when the US invaded Iraq. The terrorism surcharge reflects uncertainties arising from the actions of all the players, not just the terrorists.
The "terrorism surcharge" has always been on oil..it is more or less a security charge which we are in the process of having added to all our walks of life..riding the bus, shopping at the mall, buying imported items, sending mail etc. It was once believed that the threats would remain focused on pipelines in the deserts but as we have seen now this is no longer true..the threats are now focused on where all those pipelines lead to.
QUOTE(Erasmussimo)
But this discussion doesn't address the issue I have raised: that we have allowed ourselves to be terrorized by the terrorists. Yes, terrorists kill people, and yes, they cost us money. Neither of these facts justify losing our heads. We need to address the issue of terrorism unemotionally. I don't blame you or anyone for getting upset about the horrific crimes perpetrated by the terrorists, but when it comes time to make decisions, we have to set aside our fears and consider our options cooly. What's so debatable about that?
I already made a reply or answer to this....I will just repost it.
Perhaps I am suggesting that emotionalism is a lot more of an important factor and has been interwoven into our society and how it functions and operates so profusely that claiming it needs to be removed or set aside is extremely unrealistic. I believe it needs to be addressed, dealt with and responded to as best we can. Risk perceptions, risk premiums, future investment plans, consumer confidence, insurance costs, investments, on and on all of these things have a lot to do with how we all feel about or perceive the future and terrorism is meant to change how we feel or perceive our future.
QUOTE(Erasmussimo)
I would hope that you would discuss this without getting upset with me. There's argument, there's debate, and there's discussion. I refuse to argue, because argument accomplishes nothing. I don't like to debate, because the real world is too complicated for simple yes or no propositions. And besides, I don't want to butt heads with anybody, politely or not. I would rather consider the various points, teach where I can, and learn where I can. Can we not discuss this amicably?
I am not upset. We all come to AD and use the site and engage and interact in the topics differently..what you like is what you like. If I am misusing the debate forum in a manner the admin does not feel is acceptable or contrary to it's intended purpose they will tell me so.