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news
U.S. economy
crashes along with planes
By Kimberly
Pasquis
On-line Forty-Niner
Remembrance of
the tragic events that struck Tuesday is met with horror and
disbelief in regard to the magnitude of the terrorist attack
on the United States.
Many wonder how
this will affect us in the months ahead. From an economic
standpoint, our economy, tourism and consumerism will all
be affected.
In the last few
months, our economy has been skirting with a recession, according
to economics professor Lisa Grobar. A recession, by definition,
is two economic quarters, which would correspond with six
months or more, or negative of lack of growth.
The immediate effects
of Tuesday's attacks are of the loss of property and the billions
of dollars in destruction, Grobar said. Another consequence
was a loss of production because of businesses, airports and
federal buildings closing. We could experience a recession
as one of the many results in the months to come.
There will be a
negative effect on consumers and because of that we may see
a quarter of negative growth.
"There will
be considerable changes in the stock market as well. And students
will be able to learn about their investments," Grobar
said. "Incidents like this happen and you have to be
prepared for that."
The long-term effects
could influence a sharp rise in military spending, stimulating
job growth, thus stimulating the economy. California would
see the benefits die to the numerous military hardware producers
and bases not in use.
International trade
will also see a decline as businesses become cautious to invest
with the United States.
"This attack
was against a world trade center which symbolizes modernity,
free trade, international capital, international trade and
international business," said Dr. Terry Witkowski, a
marketing professor. "In my opinion, the people who protest
globalization share many of the cultural views held by those
responsible for this horror."
Since the economy
of Long Beach rests on the reliability of the Port of Long
Beach, Witkowski said, the city might suffer from a decline
in global trade and a general economic slowdown. If these
points become targets for terrorism and transportation of
goods will require heightened security.
Tourism may experience
a short-term decline because of hesitancy to travel, Grobar
said. Air travel could see a decrease until security procedures
are tightened.
Southern California
finds great importance in tourism and Long Beach, in particular,
thrives on the dollars that are brought in by visitors.
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