Post on 22-Nov-2014
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Working together to make healthy local living economies the best investment worldwide.
Working together to make healthy local living economies the best investment worldwide
Only Two Things Stand Between You and Peace,
Prosperity & Sustainability:
1. Buying Local
2. Investing Local
Working together to make healthy local living economies the best investment worldwide
Action
• I suggest we optimize our transactions for our own benefit.
• I recommend we begin to vote with our money.
Working together to make healthy local living economies the best investment worldwide
Working together to make healthy local living economies the best investment worldwide
Working together to make healthy local living economies the best investment worldwide
The Databank
Working together to make healthy local living economies the best investment worldwide
Database
Working together to make healthy local living economies the best investment worldwide
Website
Working together to make healthy local living economies the best investment worldwide
Local Online Market
Working together to make healthy local living economies the best investment worldwide
The Vermont Job Gap Study - Phase 6
The Leaky Bucket:An Analysis of Vermont’s Dependence on Imports
A project of the Peace & Justice Center.
Doug Hoffer, Research Director
Ellen Kahler, Project Director© July, 2000
Opportunities Are Everywhere
Working together to make healthy local living economies the best investment worldwide
The Leaky Bucket Concept
Working together to make healthy local living economies the best investment worldwide
We Import Almost Everything
Working together to make healthy local living economies the best investment worldwide
We Import A Lot
Working together to make healthy local living economies the best investment worldwide
New Money & Jobs
Working together to make healthy local living economies the best investment worldwide
Moving Debt
Working together to make healthy local living economies the best investment worldwide
Moving Mortgages
Working together to make healthy local living economies the best investment worldwide
Moving Investments
Working together to make healthy local living economies the best investment worldwide
Moving Insurance
Working together to make healthy local living economies the best investment worldwide
Moving Tax Money
Working together to make healthy local living economies the best investment worldwide
The Federal Government’s Negative Return on Investment
Working together to make healthy local living economies the best investment worldwide
Money to Be Made
Working together to make healthy local living economies the best investment worldwide
Local Multiplier
Working together to make healthy local living economies the best investment worldwide
What Might the Multiplier Be?
County employment size class Average multiplier Probable range
1,000-2,999 1.7 1.5-1.9
3,000-4,999 1.8 1.5-2.0
5,000-9,999 1.9 1.6-2.1
10,000-19,999 2.0 1.8-2.2
20,000-49,999 2.2 2.0-2.4
50,000 and over 2.2 2.0-2.5
What are Some Reasonable Values for Local Economy Multipliers?
All things else equal, multipliers will tend to be higher where: 1. The community is larger with a more diverse economy. 2. The community is a substantial distance from competitive retail/service centers. 3. The per capita income is low.
Any output multiplier larger than 2.5 should be especially examined! (Mulkey, 1978)
Working together to make healthy local living economies the best investment worldwide
• Steps We Are Undertaking Now– Capitalizing Middlebury Solari with local equity.– Forming a board of local advisors.– A cooperative online store for locally owned businesses in
Middlebury.– A cooperative mail order catalog for locally owned
businesses in Middlebury.– A cooperative department store for locally owned
businesses in Middlebury.– A local venture fund for community investment in
Middlebury.– Fostering formation of 72,000 other Solaris around the
country (particularly in Bristol, Vergennes, and Brandon).– Building a Relational GIS Database of local economic
data.
Working together to make healthy local living economies the best investment worldwide
Benefits• The potential benefits to us for taking this
action:– Safer, Friendlier, More Joyful Communities.
• You’ll know the names of your neighbors.
– Liberty & Justice For All.• In America, ownership is synonymous with control.
– $50,000,000 - $1,000,000,000 of new economic activity in Addison County, annually.• The more strictly we implement this idea, the greater
the potential benefits.
Working together to make healthy local living economies the best investment worldwide
Solari Valuation ModelGreen Cells Are Descriptions ATTENTION! This is a developers version. It is not ready for public use. Note: Please review critically for accuracy andBlue Cells Are In Puts (Variables) Alpha Version 1_02 On 7/27/03 send comments back to Yellow Cells Are Out Puts info@middleburysolari.comOrange Cells Are EntitiesBlue Cells w/ Gray Are Not Use in this Version
WARNING! CHANGE ONLY THE BLUE CELLS! (Unless you know what you are doing.)RECOMMENDATION! Save a copy of this file before using it. Any change outside the blue cells will affect the formulas!
This survey uses several geographic areas including:The Secondary Market Area (SMA), The Primary Market Area (PMA), and The "Downtown". Imagine a Bull's Eye.
Status Quo Solari Status Quo Solari Status Quo Solari Status Quo Solari Status Quo Solari Status Quo SolariAttributeSecondary Market Area Addison Co. and some of 3 others
Population 37,800 37,800Households 13,400 13,400
Total Revenue 244,300,000Primary Market Area Most of Addison County
Population 23,000 23,000Households 9,400 9,400
Total Revenue 204,300,000Downtown Middlebury Shopping District
Properties 193 193Residences 70 70Commercial 89 89Mixed Use 34 34
Businesses 196 196Assumed Profit Margin 10% 10%Assumed Current P:E 1.5 15 0 13.50
Assumed Multiplier Effect 1.5 2.5 0 1.00Out Put
Total Revenue w/ PMA 125,800,000 183,870,000 125,800,000 183,870,000 13,383 19,561 641,837 938,112 5,470 7,994 0 58,070,000.00Total Revenue w/ SMA 125,800,000 207,655,000 125,800,000 207,655,000 9,388 15,497 641,837 1,059,464 3,328 5,494 0 81,855,000.00
PMA Profit 12,580,000 18,387,000 12,580,000 18,387,000 1,338 1,956 64,184 93,811 547 799 0 5,807,000.00SMA Profit 12,580,000 20,765,500 12,580,000 20,765,500 939 1,550 64,184 105,946 333 549 0 8,185,500.00
PMA Leakage -38% -10% -78,500,000 -18,387,000 -8,351 -1,956 -400,510 -93,811 -3,413 -799 0 0.28SMA Leakage -49% -15% -118,500,000 -31,148,250 -8,843 -2,324 -604,592 -158,920 -2,077 -2,324 0 0.34
Business Valuation 18,870,000 275,805,000 18,870,000 275,805,000 2,007 29,341 96,276 1,407,168 820 11,992 0 256,935,000
Status Quo Solari Status Quo Solari Status Quo Solari Status Quo Solari Status Quo Solari Status Quo SolariEffect of Multiplier and Local Currency
Status Quo Solari PMA SMA Status Quo Solari Status Quo SolariLocal Currency Use Rate @ 30% 1.5 1.95 58,070,000 81,855,000 87,105,000 113,236,500 122,782,500 159,617,250
0% 1.5 1.500 58,070,000 81,855,000 87,105,000 87,105,000 122,782,500 122,782,50010% 1.5 1.650 58,070,000 81,855,000 87,105,000 95,815,500 122,782,500 135,060,75020% 1.5 1.800 58,070,000 81,855,000 87,105,000 104,526,000 122,782,500 147,339,00030% 1.5 1.950 58,070,000 81,855,000 87,105,000 113,236,500 122,782,500 159,617,25040% 1.5 2.100 58,070,000 81,855,000 87,105,000 121,947,000 122,782,500 171,895,50050% 1.5 2.250 58,070,000 81,855,000 87,105,000 130,657,500 122,782,500 184,173,75060% 1.5 2.400 58,070,000 81,855,000 87,105,000 139,368,000 122,782,500 196,452,00070% 1.5 2.550 58,070,000 81,855,000 87,105,000 148,078,500 122,782,500 208,730,25080% 1.5 2.700 58,070,000 81,855,000 87,105,000 156,789,000 122,782,500 221,008,50090% 1.5 2.850 58,070,000 81,855,000 87,105,000 165,499,500 122,782,500 233,286,750
100% 1.5 3.000 58,070,000 81,855,000 87,105,000 174,210,000 122,782,500 245,565,000
Change
PersonDescription
Value Per
The System House Hold Business PersonDescription
The System Household Business Change
New CashflowMultiplier Multiplier Output PMA Multiplier Output SMA
Working together to make healthy local living economies the best investment worldwide
Summary• Specific actions and the key benefits:
– Buy Local and you increase your neighbors’ fortune.
– Invest Local and you increase your own fortune.
– These two actions create a positive feedback system designed to raise local wealth and income.
Working together to make healthy local living economies the best investment worldwide
Working together to make healthy local living economies the best investment worldwide.