It was the first time the Seattle-based department store chain has held a major sale outside of its three regularly scheduled sales a year. Several economists noted the uncertainty surrounding the slumping economy and possible reprisals could weigh on consumers, and any rebound in sales could vanish with new terrorist attacks on U.S. soil. But for now, retailers said most consumers are ready to get on with their lives, and that will soon include shopping for the holidays. War, of course, poses economic risk to more than consumer confidence. War can spoil the value of money as inflation develops after months of conflict.
Governments typically borrow to pay for military action, driving up interest rates.
As the military absorbs a greater share of the nation's output, the price of goods and services can rise. Prolonged conflicts like World War II create labor shortages, which can push up wages. In short, life becomes more expensive. But, experts said, none of those scenarios appear likely today. Because the economy already was slumping long before Sept. 11, production of manufactured goods far exceeded demand.