|How Money Moves|
Market analysis is about how money moves – where it comes from, how it turns over and multiplies, and how individual expenditures impact total spending power. Understanding economic development at this most basic level gives policy makers clues to where and how they can intervene in the economy to have the greatest impact.
At the local level, the choices an individual makes for the expenditure of every dollar matters. Where you live, where you work, where you shop, and everything in between, matter in the local economy. How you pay for your purchases or services matters in how the transaction is recorded and reported. The kinds of jobs, and who holds them, inside and outside the community, matters in how much money made in the community stays in the community.
Understanding economic development at this most basic level enables the understanding of the relative success or potential failure of the most complex development project. Moreover, it is the foundation for any development activity to: