Why do you think the american economy improved after 9/11?Did the defence deals have something to do with it?

Answer 1

It only improved for the rich. For the rest of us, it is worse than it has ever been since the great depression! *sm*

Answer 2

After 9/11, the economy only improved for the top level of people, estimated at about 5 %. Certainly the tax cuts only affected them and didn't help the working families that much.

Jobs disappeared, pensions disappeared, outsourcing, insourcing, and an influx of 12 to 20 million Illegal immigrants slowly, but surely, reduced the status of the Middle Class. The zero percent offered on housing caused a boom in new sales, but this was a "teaser" and we are now paying for it. These homes were sold to people with little or no financial advice, most of them ignorant about these matters.

Manufacturing is gone with the wind in America and few products are made here. Even our food industry is suffering, since many food products are imported. Safety standards have been ignored, environmental concerns neglected. We now have toys with lead paint, dog food with melamine and several instances of spinach and other veggies laced with poisons.

You are told it is a great economy, but young people cannot find jobs. Even college graduates are finding it difficult and often end up as sales clerks at Sears or Walmart. And they are loaded with debt, sometimes more than $100,000, plus interest.

The greatest and most prosperous economy this country has ever known was during the Clinton Administration. Your taxes may have been higher, but a job was available, it paid more, and your basic requirements, police, fire, etc., were adequately covered. This is fact, and is something Republicans, eternal Clinton-haters, fail to mention.

It is always amusing to hear people talk about the great economy. Look around you! Look at that worker wondering if his pension will disappear. Look at the family with no health insurance. Look at that elderly person, wondering if Social Security will fade away. Look at that young person, finding that an adult has the low-paying job that used to be reserved for youth. Bankruptcy is no answer for the bill-laden American any longer, and most bankruptcies involved high medical bills. Changes in the law have those bills follow you for your lifetime, no matter how dire your circumstances.

Our economy sucks, because it is aimed toward the Wealthy, the Corporate class, where CEO's make 300 times what the average worker can make, and the American Middle Class, once the envy of the world, is gone. If you have a good job, enjoy it while you can, because there is no guarantee it won't be farmed out to India in a cost-cutting move.

Answer 3

The profits of the defense industry & the obscene profits recorded by big oil since the invasion of Iraq has made the figures for the economy look good. The 'feel good' attitude of the bulk of the American people is being supplied by the Chinese through the buying of our debt. They are, in essence, paying for the Iraqi war. The government is hiding this fact from the American people. Do you think for a minute the 3 billion dollars cost a week in Iraq could be sustained without raising taxes? Remember the great tax cuts given to the American people by Cheney & Bush. Everybody making 150,000 or more benefited greatly. Some administration in the future will raise taxes, it will be a must. As the Chinese economy expands they will need the debt paid to finance their own economy. When they cash in their bonds & T-bills our taxes WILL go up to pay the debt. When the taxes are raised, the recepients of the tax break will just be giving some back while the majority of Americans will actually have their taxes raised. Think about it!

Answer 4

The economy 6 months prior to 9/11 was not that bad. It was a mild normal recession. Since the economy has never been really good and recession like ever since 9/11.

Yes, big business and the upper class/elite did well as business and finances "move" with war which can make the stock market look good but the general American public and the largest class....middle and lower class has struggled immensly. I KNOW from my trade. I work in people's homes. I'm in their kitchens talking to MANY.

The economy did good for a while after 9/11 because the government "falsly" created a boom in the economic cycle and kick started it with "firepower" by dropping interest rates to record lows.

It worked for a while, but when you force the economic cycle like that you pay for it later. The "bust" now is 100% because of the historical lowered Fed interest rate a few years ago. I said it was going to crash back then.

The forced economy through low interest rates brought absurd inflation backed by nothing.

Now housing food and gas got very high with no reason to sustain it except the lower interest rates installed a few years ago.

When the rates were raised there the cause was pulled....the air let out so to speak. That is why we are in trouble now.

Answer 5

Well initally the economy tanked. Many major airlines went into bankruptcy and there was a general economic slow down.

To some extent tax cuts played a role in the growth of the American economy but honestly the economy grew in large part, not due to defense deals, but due to both deals in the private sector and the availability of cheap credit which has led to the mortgate crisis we face now.

In essence due to the growth of private equity firms around the globe and the increasing value of every other currency against the dollar foreign investment poured into the US because the Euro is worth more here against the dollar. So with so much money available businesses merged and home owners refinanced making increasing sums of money available at lower interest rates.

Since a full 2/3 of the American economy is driven by consumer spending the nation was "off to the races" now the age of cheap credit and easy money is catching up with us. If the US economy grows its due to individuals buying.

In essence it is part of a cycle of growth and decline. I hope this helps.

Answer 6

The middle class is the backbone of the American
economy and the economy did not improve for them.

Answer 7

The rich got richer

The top 30,000 Americans make the same amount as the bottom 50 million. That is the largest difference in American history

Answer 8

Our economy did not improve.

The fed only printed more monopoly money, tossed it into circulation...

Sure we all have more money in our pockets.. but when you decrease the value of the dollar, you really dont have more money..

If you look at major economic factors, like the forclosure rates on homes, you will see the states are not doing as well as the current administration would like for us to believe.

Answer 9

tax cuts were probably more important.

after the recession of 2000 and 9/11, businesses were unwilling to invest in more productive assets -- consumers had reduced spending and businesses had also.

the tax cuts increased both consumer net incomes [how many millions of peoples received a 100% or larger income tax cut??] and the net return on added investment.


[added investment is economics code for more tools in the hands of workers ... more tools increases both worker productivity and wages, although these effects do have some lag before they show up.]


:-)

Answer 10

Who said that the economy has improved post
9/11?