ELI5: Explain Like I'm 5

Economics of terrorism

Imagine you have ten toys, and someone takes one away from you. It makes you sad, and you want it back. Now imagine a group of people living in a country with a government that's not doing things they like. They feel angry and want to hurt the government. One way to do that is by using violence, which is terrorism.

Now, imagine that some people are willing to pay money to these terrorists to carry out their attacks. These people might have a lot of money and want to use it to hurt the government or promote their beliefs. The terrorists take this money and use it to plan and carry out attacks.

This is where the economics of terrorism comes in. The terrorists need money to operate, and they may get it through donations, drug trafficking, or other illegal activities. They might also get it from foreign countries that support their cause.

When a terrorist attack happens, it can have a big impact on the economy. People may be scared to go out and spend money, causing businesses to lose customers, and investors can pull their money out of the country or take other protective measures. This can lead to a recession or even a depression, which affects everyone in the country.

This is why countries work hard to prevent terrorist attacks and find ways to stop terrorism from growing. If terrorists can't get money, then they can't carry out their attacks, and the country can be safer and more stable. It's essential to understand and address the economics of terrorism to keep everyone safe and secure.