stimulus by expenditures from savings

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    ScottL
    That is an interesting question. Essentially, you have businesses that in lew of revenues are recieving money to operate their businesses buying goods and services and paying wages. The money is either coming from personal savings or investment by other entities. In terms of an impact analysis, it really does not matter where the money comes from, it matters that it is being spent in the local area. That money still is supporting other jobs in the area. It is a legitimate analysis. There are some caveats though. Any money coming from personal savings is shifting consumption from future years to current year. I would make note of that. Also, the business cannot operate indefinately in this manner so it is not a long term impact unless the investment or savings is replaced by actual business revenue.
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