Impact of establishing Homeland Security on the US GDP
After the 9/11 terrorist attack against the US, the establishment of the Homeland Security has become a very major concern and object of interest both to the private and public sector. Both sectors have contributed key inputs in addressing the security situation in the United States with the aim of reducing and minimizing terror threats.
To this end, the US government has consequently invested heavily on homeland securities through considerable allocation of funds, thus creating questions about the whole aspect. The debate on government spending has specifically targeted it influence on the nation’s economic growth.
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Neither the private sector spending nor the public sector costs seems to have suffered any major fiscal drawbacks. Because terrorism threats are increasing daily and in a dynamic manner, it is, therefore, important to continue on interventions to reduce future attacks.
A terrorist attack can devastate an economy severely, and since the spending in Homeland Security is not cost with regards to economic growth, it can be very beneficial in protecting any economic growth upsets resulting from insecurity. Furthermore, more research should be done especially with regards to curbing the indirect effects that may affect the economic growth slowly.
Hobijn, B. (2002). What Will Homeland Security Cost? Economic Policy Review, 8(2). Retrieved from file:///C:/Users/Victor/Downloads/SSRN-id802964.pdf