More on the Economic Cost of Terrorism

Byrnes, Nanette. 2006. “The High Cost Of Fear.” Business Week (6 November): p. 15.

“A new survey on the cost of terrorism indicates that for S&P 500 companies alone, the threat has brought direct and indirect costs of $107 billion a year.  That figure includes extra spending (on insurance and redundant capacity, for instance) and lost revenues (from fearful consumers’ decreased activity).  Another finding of the September survey of CFOs, conducted by Duke University’s Fuqua School of Business and CFO magazine:  Some 21% of U.S. companies have reduced employees’ air travel since September 11 (as have 17% of European companies).”

Here is the survey site:

Duke University and CFO Magazine conducted a special study on terrorism for The Wall Street Journal. The study included a survey of 434 chief financial officers (CFOs) of U.S.-based companies, 124 CFOs of European companies, and 103 CFOs of Asian companies, and concluded September 4, 2006. The European polling was done in cooperation with Erasmus University in the Netherlands.


1 comment so far

  1. John Konop on

    Economists Are Destroying America

    Economists, politicians, and executives from both parties have promised American families that “free” trade policies like NAFTA, CAFTA, and WTO/CHINA would accomplish three things:

    • Increase wages
    • Create trade surpluses (for the US)
    • Reduce illegal immigration

    Well, their trade policies have been in effect for about 15 years. Let’s review the results:

    • Declining real wages for 80% of working Americans (while healthcare, education, and childcare costs skyrocket)
    • A record-high 46 million Americans who don’t have health insurance (due in part to declining wages and benefits)
    • Illegal immigration out of control
    • Soaring trade deficits, much with countries that use slave and child labor
    • Personal and national debt both out-of-control
    • Global environments threatened by lax trade deal enforcement

    Economists Keep Advocating Policies That Aren’t Working

    Upon seeing incontrovertible evidence of these negative trade agreement results, economists continue with Pollyannish blather. Some say, “Cheer up! GDP is up and the stock market’s doing fine.” Others say, “Be patient. Stay the course. Free trade will raise all ships.”

    Even those economists who acknowledge problems with trade agreements offer us only half-measures—adjusting exchange rates, improving safety nets, and providing better job retraining. None of these will close the wage gap in America—and economists know it.

    Why Aren’t American Economists Shouting From Street Corners?

    America needs trade deals that support American families and businesses in terms of wage, environmental, and intellectual property abuses. Why aren’t economists demanding renegotiation of our trade deals? There are three primary reasons:

    • Economists are too beholden to corporations and special interests that provide them with research grants.
    • Economists believe—but refuse to admit—that sacrificing the American middle class is necessary and appropriate to generate gains in third world economies.
    • Economists refuse to admit they make mistakes.

    Economic Ambulance Chasers

    Now more than ever, Americans need their economists to speak truth and stand up to their big business clients. Instead, economists sound like lawyers caught chasing ambulances: they claim they’re “doing it for our benefit”.

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