The recent attacks in Brussels may have impacts close to home, Jeff Humphreys, director of the Selig Center for Economic Growth, told the AJC. Terrorism can make people and businesses more hesitant, he said, because fear of terror prompts governments to impose new regulations and security apparatus. Companies, too, spend money on people and machines to make themselves safer.
The impact on a global economy is modest, but it is not trivial, he said, calling it “sand in the gears of the economy.”
Regulation and safety checks slow things down and reduce productivity, he said, a headwind that can drag on for decades.
“We all feel the impact on our personal productivity,” Humphreys said. “We stand in line longer. We have to do more proof of identity. It is just one more thing. We get some of it back because of technology, but we could have done that anyway.”
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