If you have ever seen depleted, economically ravaged communities, one thing they have in common is that they lack local investments. Because of that, their economies and infrastructures have collapsed. These conditions can be avoided if businesses commit to their communities and invest where they live.

In economics, there is a concept called the multiplier effect. The effect is basically that each dollar spent produces an increase in income and consumption greater than the original dollar. The way this works is that if you spend a dollar at a store, you get the product you buy, the store gets the dollar, which includes the profit from the purchase, they then use that dollar to pay their employee, their bills, lease and to buy replacement merchandise.

The employee, who is paid, uses their pay to buy goods and services. The profit for the store is used to buy goods and services. The utilities get paid. All of these these transactions repeat their impact and the cycle continues. It is estimated that each dollar spent multiplies many times throughout the economy. Because of the multiplier effect it is critical to local communities that money stays local as much as possible.

This principle drives us at Eidi Properties. We buy local investment properties, which stimulates growth, employment and prosperity throughout our communities. By buying locally, we inject money into the economy which not only stimulates investment, it improves local infrastructure development and prosperity. Keep in mind, every dollar earned and spent is taxed, which provides money to the treasuries for community developments, maintenance and upgrades. The whole community benefits.

We invest in our community because we live here and we love it here, but it is of no small consequence that we stimulate the economy that we rely on. When the community flourishes financially, we feel more confident that we can lease our stores and provide business opportunities. In a nutshell, when our community prospers, so do we and if we can stimulate that process, we are proud to do so.

Our investments in the local economy affect our neighborhoods directly and indirectly. Our businesses employ people, provide goods and services and indirectly fund local governments, improving our public infrastructure and community assets, like parks and libraries. These developments work hand in hand as improving the community through business and public works adds community beauty and services for everyone.

When the community thrives in this way, it feeds upon itself and grows itself. The combination of economic growth and quality public facilities cultivates a  communal sense of pride. And communal pride triggers people contributing to the community through volunteer work and involvement. Like with the economic multiplier, this cycle continues to build upon itself.

All of these factors improve the world around us and the world in which we live. We, at Eidi Properties, are proud to contribute to and participate in this healthy economic cycle where everyone benefits. We enjoy stimulating our local economies and communities. We appreciate that this model works for us personally, but what we are committed to is creating value for those who surround us, support us and live with us as our neighbors and friends. We get excited knowing that our investments multiply and become everyone’s investments.

This article was written by Jerry Mooney.