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 |
Some Background on EDPro Weblog
The purpose of this weblog is to help economic development professionals -- EDPros -- keep up with the changes sweeping our profession. Strap on your goggles. It's a whole new game. There are no experts any more. The only place to learn about economic development is from other EDPros who are doing it.
One other point: the prevaling approach (paradigm, if you like) in economic development is shifting from competition to collaboration. There are a lot of reaasons underlying this shift, but here's the important insight: You, your community, and your region will do better by collaborating and sharing information.
If you are using a news reader, here is the link to syndicate this site:
Here's the link if you are a bloglines subscriber:
Speaking and workshops on Open Source Economic Development
As the idea of Open Source Economic Development starts spreading, more people are asking about it. Visit the I-Open web site to learn more. My colleagues and I are happy to explain the basic concepts in a talk or a workshop. E-mail Susan Alshuler if you'd like to learn more about workshops and speaking.
Background on Ed Morrison
Download some background information on me here.