One Person's Spending Is Another Person's Job
Dallas Morning News
Sept. 25, 2001

Many people apparently feel guilt over shopping and conducting business as usual in such a time of tragedy and sadness. That is a noble impulse, but it reflects a misunderstanding of the way the economy works. We should remind ourselves that one person’s consumption is another person’s production. One person’s spending is another’s income—and job. Adam Smith’s "invisible hand" of the market can be counted on to translate our own self-motivated decisions into the common good.

We are all in this together. A decision to cut back and hunker down affects others as well as ourselves. I don’t suggest that individually we try to spend the country out of the slowdown—or recession, if it comes to that. But I do urge all of us to be mindful of the impact our decisions have on others and try to get back to business as usual as soon as we can. As President Bush said, "The American economy is open for business."

Also, let’s not forget that we make money in the stock market by buying low and selling high. It looks mighty low to me.

About the Author McTeer is president and CEO of the Federal Reserve Bank of Dallas.