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"The success of my family's business depends on finding and cultivating a creative and innovative workforce. I have witnessed firsthand the power of the arts in building these business skills. When we participate personally in the arts, we strengthen our `creativity muscles,' which makes us not just a better ceramicist or chorus member, but a more creative worker—better able to identify challenges and innovative business solutions." — Christopher Forbes, Vice Chairman, Forbes, Inc. Economic Impact:, Total, Direct, Indirect, and Induced How can a dollar be respeni? Consider the example of a theater company that purchases a five -gallon bucket of paint from its local hardware store for $100—a very simple transaction at the outset, but one that initiates a. complex sequence of income and spending by both individuals and other businesses. :. Following the paint purchase, the hardware store may use a portion of the $100 to pay the sales clerk I who sold the bucket of paint. The sales clerk then respends some of the money for groceries; the grocery store uses some of the money to pay its cashier; the cashier then spends some of the money 1 for rent; and so on. j The hardware store also uses some of the $100 to purchase goods and services from -other businesses, 1: such as the local utility company, and then to buy a new bucket of paint from the�paint factory t -o restock its shelf. -Those businesses, in turn, respend the money -they earned from the hardware.store to buy goods and services from still other local businesses, and so on. i Eventually, the last of the $100 is spent outside of the community and no longer has a local economic impact: It is considered to have leaked out of the community. . The total economic impact describes this full economic effect, starting with the theater's initial paint purchase and 'ending when the last of the $100 leaks out of the community. It is composed of the direct economic impact (the effect of the initial expenditure by the theater), as well as the indirect and induced economic impacts, which are the effects of the subsequent rounds of spending by businesses and individuals, respectively. Interestingly, a dollar ripples very differently through each community, which is why an input-output model - ivas customised for the unique economy, of Indian River County: - AMERICANS FOR THE ARTS I Arts & Economic Prosperity 5 5