Retailers take their customers' money and with this they pay wages, taxes, other operating expenses, and order more fishing rods and equipment. In turn, the retailer's product distributor places more orders and the factory keeps making more fishing rods and other items.
More customers buy more products, the cycle repeats itself, and a thriving industry develops.
The initial money spent for a fishing rod, nightcrawlers and miscellaneous fishing equipment is known as a direct expenditure. Other examples of direct expenditures related to fishing include lodging, transportation, and food costs, plus items such as a boat, clothing, a magazine subscription, and other equipment. It is known as secondary expenditures and results in what economists call multplier effects. An estimated 1.5 million people go fishing in Ohio each year. This figure includes those who buy a fishing license, obtain a free license, and those who are not required to have a license.