Terrorism Is Such a Real Term Paper

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" (Bernasek, 2004)

The article underlines how terrorism's costs cannot be measured simply in expenditures, but in lost opportunities for growth and development of domestic industries. The war in Iraq only exacerbates the costs of terrorism, as it increases the fears of consumers and provokes the potential for terrorist attacks. Thus, even though the model is open to debate, and economists quibble about whether it is too low or too high, all agree that hidden costs have been incurred due to terrorism's negative effects on consumer confidence and driving up oil prices. "It isn't a coincidence that we have oil prices breaching the key $50-a-barrel threshold," notes one analyst, which would have been unheard of before 2001. But there is hope as "any analysis of the war's economic impact over time, and the war on terrorism's impact over time "is not complete without considering the potential future benefits to the United States and the rest of the world.

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Increased political stability in the Middle East, stable energy markets and diminished global terrorism could pay major dividends. In fact, many people in Washington hope that the benefits will ultimately outweigh the costs, however large." (Bernasek, 2004)

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