The proportion of all household budgets spent locally. The proportion of a new dollar that becomes income to local households. In summary, when we put the static rain barrel model into motion by adding in the local businesses, local governments, school, etc., we add the dynamic element to the model. The results of the community's dynamic element is the creation of new income within the community to support local households, i.e., making it. This GCP is the sum of a year's economic activity, which in turn is the total of all firms' outputs, using local resources and outside resources.
Local firms respond to external and internal market demand changes.
An ability to respond to market demand depends on the availability of resources such as investment capital, skilled workers, and the know-how to produce at a competitive cost. These constraints can be overcome by discovering new local resources, bringing in new outside resources, or creating new ways to combine resources. New ways to combine resources are created when new inventions are developed, new innovations adopted, and new institutions formed. Gross community output is diminished if these producers are receiving outdated or incorrect information and if they are not able to keep up with change because they lack education and training. This can result in local firms' losing their share of the market to competing firms in other communities.