Someone put my economic knowledge in check

[LesMTS]

I know nothing about economics. Have never understood it all. Mostly because I've never read about it or seriously taken an interest in it.

I just heard someone on TV that 9/11 caused 3000 deaths and caused millions of dollars worth of damage to the US.
Millions of dollars worth of damage for individual companies, surely? The money stays in the US, no?

Please point out the flaws in my reasoning (I don't meant this in an "I think I'm right way", I really want you to teach me what I'm doing wrong here),

[Witch]

well some of the money for repairs to the buildings etc might have came from the us government therefore harming the economy.

Plus i think they had injury compensations for non us folk killed on the plane, meaning they wouldnt keep all the money in the us

just some thoughts

[LesMTS]

Originally Posted by Witch

well some of the money for repairs to the buildings etc might have came from the us government therefore harming the economy.

But the companies they are employing are, I assume, US companies. So the big, churning pot of money stays in the same pot no matter how much it churns?

[Zooropa]

Publically funded agencies like cops and firemen were hurt/killed too, and their resources were damaged.

By "US" did it mean the US economy?
I did two years of economics at uni, but I remember little now.

Economy would have taken a hit as consumer confidence took a knock and spending would have slowed down.

That would take the money out of "the pot" in the short term.

Originally Posted by LesMTS

But the companies they are employing are, I assume, US companies. So the big, churning pot of money stays in the same pot no matter how much it churns?

US investors may chose to invest overseas if their confidence has been shaken by falling share prices.

[LesMTS]

Originally Posted by Zooropa

Economy would have taken a hit as consumer confidence took a knock and spending would have slowed down.

Aye, but this quote was talking about property damage. Deaths and property damage to the US caused by Al Qaeda.

[Witch]

Originally Posted by LesMTS

But the companies they are employing are, I assume, US companies. So the big, churning pot of money stays in the same pot no matter how much it churns?

see i dont know squat about economics

so i was just saying what i think, ill have a think and get back to you on that
and what marc said is right on he head, alot of companies will maybe spend more money on importing things rather than investing in their own economy.

[Potatojunkie]

Hit the stock market pretty badly at the time, as I recall. Stocks just became worth less money, across the board. Especially in airlines.

Originally Posted by LesMTS

Aye, but this quote was talking about property damage. Deaths and property damage to the US caused by Al Qaeda.

Ah. I guess whoever owned the Twin Towers spent quite a lot on them, and had expected to get a few good years more out of them. Like if you spend £100 on a telly, then have it for six or seven years, Cash Converters will give you twenty bucks for it if you're lucky. If someone were to fly a plane into it, though, you could call it £100 worth of damages even if your insurance payed for it and they payed for it through sneakily over-inflated premiums in the first place.

It's a way of generating impressive numbers without them having to bear any real relation to the actual impact of an event.

[LesMTS]

Originally Posted by Witch

see i dont know squat about economics

Neither do I. I've totally neglected learning about it.
The business news on TV is gibberish to me. Absolute gibberish. I really should learn about it.

[Witch]

Originally Posted by LesMTS

Neither do I. I've totally neglected learning about it.
The business news on TV is gibberish to me. Absolute gibberish. I really should learn about it.

I don't personally see the need, if it interests you then it would be worth learning about, but for me, i don't really care enough

[Zooropa]

Originally Posted by Potatojunkie

Hit the stock market pretty badly at the time, as I recall. Stocks just became worth less money, across the board. Especially in airlines.

Aye.

That's where I know for a fact the economy took a bashing.

As to the money "leaving the US" due to the physical damage then you'd have to look into what companies were involved in the rebuilding, from architects to the guys on the ground.

[LesMTS]

Originally Posted by Potatojunkie

Hit the stock market pretty badly at the time, as I recall. Stocks just became worth less money, across the board. Especially in airlines.

That makes sense, but they didn't directly cause property damage to the US as a country, surely?

[Witch]

If i remember correctly they where helped out by the red cross and then gave money to them, this would have also effected the economy due to the red cross helping people world wide.
If they helped that is, i cant remember unfortunately

[Zooropa]

Originally Posted by Witch

I don't personally see the need, if it interests you then it would be worth learning about, but for me, i don't really care enough

I think it's important to know a bit.
The basics at least.

I'm not clued up on investments and finance, but macroeconomics is pretty easy.

[Potatojunkie]

Originally Posted by LesMTS

That makes sense, but they didn't directly cause property damage to the US as a country, surely?

People all over America screaming "FUCK!" down the phone at their accountants and kicking over their coffee tables? Could be.

[Witch]

I suppose knowing stuff about the economy might be helpful, i know some stuff about finance and investments for instance. I dont even know what macroeconomics is, that might make me ignorant, or maybe i do know and don't realise i know.