Terror's Economics; New Political Divisions May Alter Global Financial Alliances

Samuelson, Robert, Newsweek

Byline: Robert Samuelson

This is an age of glaring contradictions. It's hard to ignore the great disconnect between the rise of terrorism and the relentless advance of the world economy. After September 11, the reasonable fear was that terrorism and its nasty side effects--more anxiety, uncertainty, security checks and higher costs for moving people and cargo--might cripple economic growth and frustrate the spread of globalization. It hasn't happened. Not yet, anyway.

To be sure, terrorism has exacted some

steep costs. Airlines and tourism suffered after September 11; that could happen again. Spending for the war in Iraq was vastly underestimated. But the …

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Publication information: Article title: Terror's Economics; New Political Divisions May Alter Global Financial Alliances. Contributors: Samuelson, Robert - Author. Magazine title: Newsweek. Publication date: August 21, 2006. Page number: 57. © 2009 Newsweek, Inc. All rights reserved. Any reuse, distribution or alteration without express written permission of Newsweek is prohibited. For permission: www.newsweek.com. COPYRIGHT 2006 Gale Group.

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