Buy local in Fremont

Sunday, June 03, 2007

Economic development involves managing three flows of money. "Good money" comes into your economy through businesses that trade outside your region. These traded businesses generate higher incomes, and they typically account for about one-third of employment.

"Bad money" leaks out of your economy in a few ways. People shop outside your region. Smart people leave (the brain drain). And young people drop out of school (a more serious form of brain drain).

"Neutral money" represents money that circulates in your economy as we buy and sell things to each other. Increasing the velocity of neutral money increases what economists call "the multiplier".

So, launching buy local campaigns makes sense to increase the velocity of neutral money and reduce the flow of bad money.

Here's an example from Fremont, CA of some YouTube videos that are running on local television. Read more. Watch a video.

posted by Ed Morrison |

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