“The Flow of Money, Explained (Part 1)” is the first of a three part series that will attempt to explain: what the flow of money is; why it is important; and how it can be improved. Of course we are talking specifically about the flow
of money as it relates to Leander, it’s economic strength and your quality of life.
Have you ever wondered about the flow of “your” money? Where you earn it? Where you spend it? The direct and indirect impact you make on local area economies by shopping, for example, at HEB in North Austin vs. the HEB Plus in Leander? In reality, the flow of your money can cause a greater divide than say nine geographic miles.
“Shop local” is more than a catchy advertising slogan, it is rooted deep within the fundamentals of a local economy. Shop local is about the flow of money which can improve or deteriorate a local economy. What is a local economy?
In this series it is defined as a geographic area in which people live and work, and earn and spend. For example, money that flows into the Leander area, is circulated within Leander, and then flows out of the Leander area.
The business activity of “Primary” employers (industries) or contributory industries located within the economy is typically responsible for importing money into the area. A primary employer or industry is one that relies on the sale of its goods or services “outside” the local geographic economy (export goods and services, import money). Leander has 65 primary employers spanning wood products, metal fabrication, electronics, construction and landscaping that predominantly export its goods and services outside Leander, importing necessary money into Leander’s Economy.
To better understand the flow of money, we utilize a description provided by the National Association of Industrial and Office Properties: a bucket. The wealth of an area is contained in a bucket. It swirls around, traveling from person to person, business to business, and person to business, and is constantly moving. But there are holes in the bucket causing the wealth of the community to leak out. These holes may include specialty retail, services and
jobs that force residents to shop outside the community. Money continuously leaves the community through holes in the bucket. Like a bucket filled with water, a hole no matter how small will cause the water to eventually drain out. Sustainable communities limit the number of holes in the bucket through increased business development and job creation. Thus it is imperative Leander continue to foster Primary Employer growth, entrepreneurial activity, and commercial and retail business improvements.
Part 2 of the “Money Flow” series will address in greater detail “why” the flow of money is important; to you, your family and neighbors, and quality of life in Leander.
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