The Cost of Terrorism in Pakistan
This study claims "terrorism has cost Pakistan around 33.02% of its real national income" between the years 1973 and 2008, or about 1% per year.
The St. Louis Fed puts the real gross national income of the U.S. at about $13 trillion total, hand-waving an average over the past few years. The best estimate I've seen for the increased cost of homeland security in the U.S. in the ten years since 9/11 is $100 billion per year. So that puts the cost of terrorism in the US at about 0.8% -- surprisingly close to the Pakistani number.
The interesting thing is that the expenditures are completely different. In Pakistan, the cost is primarily "a fall in domestic investment and lost workers' remittances from abroad." In the US, it's security measures, including the invasion of Iraq.
I remember reading somewhere that about a third of all food spoils. In poor countries, that spoilage primarily happens during production and transport. In rich countries, that spoilage primarily happens after the consumer buys the food. Same rate of loss, completely different causes. This reminds me of that.
Posted on June 6, 2013 at 5:58 AM • 23 Comments