Terrorism is defined as a hostile attack or action that is meant to cause panic, physical damage, and even mental and emotional damage.These acts can be as small as a lone gunman firing randomly at a few people, and as devastating as hijacking aircraft and flying them into buildings, killing hundreds even thousands.Over the past twenty years, there have been over seventy terrorist attacks in the United States alone( (Psychological effects of terrorism).
The most recent and devastating attacks occurred on September 11th, 2001, when Arab suicide pilots hijacked four American Airlines planes and crashed them into both towers of the World Trade Center, The Pentagon, and one crashed into a small field in Shanksville, Pennsylvania when the passengers fought back and took the plane down (Psychological effects of terrorism).
These attacks caused an extreme amount of damage and deaths, unlike most Americans have ever seen.
Nevertheless, terrorism is risky business for everyone, and insurance companies hate risk as much as anyone else. In France, for example, tourism accounts for approximately 7% to 8% of total gross domestic product (GDP).
Vanguelis Panayotis, a director of MKG tourism consultancy, told Reuters that he expected a 30% decline in visitors to France in the month after the Nice attacks.
The financial markets literally shut down after Sept.
11 and did not really recover until months after the 2003 invasion of Iraq.The most immediate and measurable impact of terrorism is physical destruction.Terrorists destroy existing plants, machines, transportation systems, workers, and other economic resources.The high number of death caused a great deal of psychological issues that are still affecting people today. The best way to cope with a traumatic event is to address the situation, realize what happened, and get along with your life. The most severe psychological damage was involved with the people who were in the buildings at the World Trade Center, and those who were in downtown New York City that fateful day. If you let it permanently damage your mind, the people who committed the acts have one, you must show that you can stand back on, brush yourself off, and move on with your everyday life. Stock market indexes did not decline much after the terrorist attacks in France killed at least 129 people in 2015.However, the deadly attack in Nice, France, in 2016 only adds to the sentiment that France may be an increasingly unstable place to live and do business in.On smaller scales, acts of terrorism may blow up cafes, churches, or roads.Large-scale attacks, most infamously the World Trade Center bombings on Sept.Productive resources that might have generated valuable goods and services are destroyed, while other resources are almost invariably diverted from other productive uses to bolster the military and defense.None of this creates wealth or adds to the standard of living, even though military spending is often erroneously cited as a stimulant; this is the "broken window fallacy" sometimes mentioned by economists.