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To: chaz who wrote (47185)	9/27/2001 8:36:28 PM
From: Judith Williams	Read Replies (4) \| Respond to of 54805

Chaz-- not sure what you mean by "terror tax" I'm not including the economic dislocation from September 11 and its ripples. Empty planes, empty hotel rooms, empty restaurants. Tisch, head of the hospitality industry group, estimates that the industry will lay off a million workers if rack rates/restaurant turns don't start improving. But those direct effects are not what I mean. By terror tax I mean the reordering of national priorities--where dollars are going. The farm bill, for example, is now imperiled. Going forward, what impact will this have on our balance of payments and exports? Airport security may require a surtax of $2.50 or so. We've already had the Bush announcement of "federalization" of airport security. Border guards are working 16 hours a day; more will have to be hired. Is there any multiplier effect in this kind of outlay? Or this kind of labor? Other than preventing something horrible? There will have to be massive foreign aid and loan guarantee programs to bring the "coalition" into line. Pakistan is just the start. [At least we are now not in arrears on our UN dues.] These expenditures take dollars away from other priorities. Education, for example. An educated population is a critical component of a productive society. Will we dampen efforts here and at what personal and economic costs? Crime is down in Boston primarily because people could get jobs. With less opportunity and possibly even worse educational prospects, will we see an upturn? These are just some of the factors I see ahead in a "terror tax" and wondered if anyone had any thoughts. Judith