After the initial shock of the Sept. 11, 2001 events wore off, one MSU professor began thinking about the attack’s repercussions in terms of his profession — economics.
Professor Charles Ballard would learn soon after the World Trade Center towers collapsed that a good friend’s wife was killed.
Still, how the nation’s economy was going to be affected came to mind.
“It certainly was an emotional tragedy, but it was different as an economist processing those events as they went through my head, personally,” Ballard said.
Looking back, the U.S. was already in recession, with the stock market bubble bursting due to a general weakness in the economy, he said.
By the time it reopened six days after the attacks, the stock market had been closed for the longest time since the Great Depression. The Dow Jones Industrial Average fell 684 points, or 7.1 percent, its largest ever one-day decline.
Ballard said the one sector that took the biggest hit was commercial airlines.
“A lot of people looked at air travel and said ‘I don’t want to do that,’” Ballard said.
But Ballard said the airline industry has recovered.
“Those (airliners) that are struggling can’t attribute it to Sept. 11 now,” he said.
“For the airlines that are still struggling, it’s due to the overly capacitated airline market.”
Amanda Fisher, a no-preference junior, said she still feels the economic impact when it comes to flying.
“I think it still affects the economy,” Fisher said. “I was looking for tickets home to Milwaukee for Thanksgiving and they were $600.”
Jim Cervo, a retailing junior, said he had a flight booked for a spring break trip to Nevada before the attack. His mom made him push the flight back more than four months.
“My mom had me change it right away,” Cervo said. “I think her fears wore off, but because of the immediate panic, she didn’t want me to fly.”
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