What does bin Laden's death mean for the world economy?
Sure, the terrorist's demise will have a profound impact on the fight against al Qaeda. But how will it affect us financially?

Economists are divided on whether the killing of Osama bin Laden will boost the global recovery. Some say it will, as it will increase investors' optimism. Others say the death of the world's most wanted terrorist could actually create economic problems, by cultivating fears of revenge attacks by terrorists in the oil-rich Middle East. But on balance, will the al Qaeda leader's death help the global economy, or drag it down?
Osama's demise could boost the economy: Rising gas prices are holding back the recovery, says Andrew Leonard at Salon. Bin Laden's death could help ease tensions in the Middle East and reinforce reformers pushing "constitutional democracy, rather than dictatorship or Islamic theocracy." And bin Laden's death will boost Obama's "mojo" in budget debates, increasing the odds that he can prevent drastic spending cuts "that would create additional unnecessary drags on economic growth."
"How will bin Laden's death affect the economy?"
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Actually, this could push oil prices up: If anything, the killing of bin Laden "might spark a rise in violent activity," says David Berman at the Toronto Globe and Mail. That would mean that oil's "risk premium went up with his death, not down." But there are many factors affecting stability in the region, and the political upheaval in Egypt and Libya will probably have greater impact on the global economy than bin Laden's death.
Bin Laden's death won't move the needle either way: "We can rejoice when an event like this occurs," says Reagan administration budget director David Stockman, as quoted by CNBC, but we're dreaming if we expect it to fix our financial problems. The economy is "totally medicated with fiscal and monetary stimulus that is now coming to an end." To speed up the recovery, we need to fix our real economic problems, such as our massive debt and a looming debt ceiling, and bin Laden's death won't change that.
"Debt overshadows economy, bin Laden death: Stockman"
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
5 hilariously sparse cartoons about further DOGE cuts
Cartoons Artists take on free audits, report cards, and more
By The Week US Published
-
Following the Tea Horse Road in China
The Week Recommends This network of roads and trails served as vital trading routes
By The Week UK Published
-
Crossword: March 30, 2025
The Week's daily crossword
By The Week Staff Published