In this static model, money flows into and out of the rain barrel, but nothing is happening in the barrel itself. The water level in the barrel will rise and fall, depending upon the volume flowing into and leaking out of the container. This water line represents the prosperity of the community. These are captured dollars. These unearned dollars can come from social security and other retirement payments, interest, rent and dividend from outside investments, grants from higher governmental agencies and foundations, and from investors by outside interests.
Local households shop out of the area to buy goods and services.
Local firms and employees pay taxes and social security to higher governmental units. Community citizens, local firms, and local government hold assets such as land, buildings and human skills that are underutilized and are This text was extracted from the publication, L-775.