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Taking Stock in America
Resiliency, Redundancy and Recovery
in the U.S. Economy
So much changed on September 11.
America sustained a terrible shock as
a foreign enemy struck on U.S. soil for the first time since
Pearl Harbor. Families mourned for lost parents, siblings,
sons and daughters. The military went to war. Security tightened
at home. The economy, already wobbly after a 10-year expansion,
reeled as spending faltered and job losses piled up.
We suffered.
And we endured.
A diverse nation came together through
outrage, mourning and recovery. Within months of the attacks,
the nation was back on its feet, fighting a war on terrorism
while everyday life moved toward normal. Leadership, national
character and military might helped the United States rebound.
The economy played a central role, too.
It hasn't gotten as much attention as political and military
factors, but it shouldn't be underestimated. At a time of
crisis, the most powerful economy on earth continued to function,
adapting to changing circumstances and providing the resources
to handle our national emergency.
The terrorists didn't put America out
of business. Most people didn't miss a day of work. Consumers
returned to the mall. Within two months, the stock market
had recovered all its losses. The economy bent but didn't
break. Indeed, it started to stabilize and regain strength
within weeks. Despite all that had occurred, GDP managed to
grow at a 1.7 percent annualized rate in fourth quarter 2001.
Today, the U.S. economy is more resilient
than ever—better able to take a blow and bounce back. Our
ability to handle adversity stems from several economic strengths
that most of us take for granted. Size adds to stability and
durability. Diversification, redundancy and decentralization
help keep the system functioning even when key sectors are
under stress.
American capitalism is vibrant, never
stagnant. Like a living organism, it possesses a powerful
instinct, even in adversity, to mutate, survive and grow.
Free markets, relying on the clear signals sent by shifts
in supply and demand, can adjust to new realities on a daily—no,
hourly—basis. Without central direction, the system renews
and refreshes itself. It recycles resources. It innovates.
Entrepreneurs and highly skilled, well-educated workers strive
to give Americans what they want.
The U.S. economy delivers—and not just
when it comes to consumer goods and conveniences. It also
provides the resources and know-how to increase our security
and safety, areas of greater concern now. A free enterprise
economy and democratic political system let the people, not
a few bureaucrats, choose how to balance the material aspects
of our living standards against our desire to reduce risk.
We, as Americans, can take this comfort
in the wake of September 11: Our economy is our strength—one
of the most powerful protections we have against our enemies.
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