After 9/11 insurance premiums + perceived threat of terrorism increased.Why didn't investment into US fall?

Question

After 9/11 insurance premiums against terrorist attacks increased and the threat of terrorism was perceived to have increased? What were the reasons that investment into the United States didn't fall as predicted? Please help and be through, I have little Economics background. Kind regards Colin

Answer 1

A few reasons.

First, the threat of terrorism has gone up worldwide, especially with the 'invasion' of Iraq. However, the US has imposed the most draconian laws and the harshest curbs on privacy in an attempt to thwart any further terrorism-related activities. Therefore the US, com[pared to the rest of the world, is not in graver danger.

Secondly, investments can take place in many areas. Terrorists would most likely strike in symbolic areas, where media coverage will be huge, and toll on morale heavy. There are not that many places like that; so if you are investing ina farm in Minesota, you are safe. The investments get diverted within the US, not moved elsewhere.

Thirdly, the US military machine is in need of supplies, and given that they are liekly to shop within the US, a high growth area likely to attract investemnt is the US military supplies industry. Therefore, perversely if you like, the threat of terrorism attracts investments into these type of industries.

Hope that helps.

Answer 2

How did you do not ignore that the FBI isn’t already searching into the challenge? after all, Lerner can exercising his loose speech rights with reference to the commercial device, economic redistribution and the concepts on a thanks to attain it. this remains a loose usa and human beings can convey their perspectives of the commercial device and “troublesome the skill of Wall street and ”troublesome the skill of the great corporations.” What you describe as “terrorism” some might want to describe as an late fact of skill by those who don’t administration many of the money in this usa. it easily relies upon on the way you look on the challenge.

Answer 3

reckon it was because of americas wealth and power people will always see that as an overwhelming positive