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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 respent?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 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 for rent; and so on. The hardware store also uses some of the$100 to purchase goods and services from-other businesses, (: . such as the local utility company,and then to buy a new bucket of paint from the"paint factory to restock its shelf.:Those businesses, in turn,respend the moneythey earned from the hardwarestore to buy goods and services from still other local businesses,and so on. 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 i and ending when the last of the$100 leaks out of the community. lt,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 - was customized for the unique economy of Indian River County. - — — — -- AMERICANS FOR THE ARTS I Ails&Economic Prosperity 5 5 1II