How 9/11 was used as a pretext to the mass wave of layoffs following the attacks

Résumé du document

In the immediate aftermath of 9/11, the American population had its eyes fixed on Wall Street with fears that after such an attack, the world's economic superpower might not recover. Stock exchange shares were expected to undergo a sharp drop, the airline industry was ailing, as well as the car and insurance industries. What was going to happen? The word 'recession' came up to the minds of all. After such a blow, what else but deep recession was to be expected? And such a scenario will eventually lead to companies laying off hundreds, if not thousands of their employees. This was the general belief among American citizens. The attacks created an unprecedented crisis and trauma and its ensuing consequence, were the layoffs operated by big companies out of a need for survival.

Extraits

[...] Yet, the reason invoked at that time, if any, appeared less credible and more the prey of trade unions than justifying these massive layoffs in the name of the first terrorist attack of the 21st century. And then came 9/11. The symbol of American success and prosperity was suddenly reduced to rubbles. Wall Street was closed, the economy was abruptly halted and this forced stop was another reason provided by companies. Indeed, with Wall Street closed, transactions and financial operations were either suspended or delayed. [...]

[...] The major economic consequence was the ensuing mass wave of layoffs operated by big companies. It will be useful to examine the real economic situation prevailing at that time so as to better emphasize the real reasons lying behind these layoffs. Chapter VI Layoffs A few days after terrorists crushed two airplanes on the World Trade Center reducing America's economic symbol to rubbles and ashes, big companies began to proceed to a mass wave of layoffs, putting the blame on the profound crisis these attacks had just triggered. [...]

[...] For instance, as early as August 23, Midway Airlines, a regional carrier based in Morrisville, N.C., announced was cutting 700 jobs, ending service to nine cities and shedding 17 aircraft” (New York Times, 08/23/01). The case of Midway Airlines is only a tiny example of the extent of the layoffs announced or already put into execution. Overall, nation's unemployment rate jumped sharply to from in July” (New York Times, 09/06/01). With already ailing industries suffering from a lack of consumer confidence in a possible economic recovery, announced layoffs and an unemployment rate on the rise, the US economy was already depressing a month before terrorists struck. [...]

[...] Indeed, during a crisis, the population tends to obediently follow more powerful and resourceful institutions and to accept sacrifices so as to clear the situation. It is thus interesting to see how companies managed to legitimize the massive wave of layoffs they were able to operate without the population or trade unions doing anything to oppose such measures. Indeed, shortly after 9/11, companies started a large campaign of layoffs, claiming that due to the present circumstances, layoffs were the only solution possible. [...]

[...] Yet, this uncertainty was cultivated by the press and the Bush administration at the great advantage of corporate interests. The uncertain character triggered by the attacks turns out to be omnipresent since not long after the smoke has faded from Ground Zero, new uncertainty was created “with the prospect of war on the horizon, throwing many states unto uncertainty about their economic future” (New York Times, 09/19/01) The drop in consumer confidence In practice, all these uncertainties either because of the attacks or the perspective of a forceful retaliation had a direct consequence on consumer confidence. [...]