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Multiplier effect and its effect on Western Canada...

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    Multiplier effect and its effect on Western Canada...

    If we assume that because of our
    transportation issues farmers have lost
    say 3 billion dollars the effect on
    Western Canada is several times that
    amount and its effect on all of Canada
    is huge also.We know that farmers spend
    money and it becomes someone else's
    which in turn becomes someone else's and
    so on. Hence the statement "Money is
    made round to go round".Farmers in
    general have a fairly high propensity to
    spend: fertilizer, equipment, fuel...
    According to the American Independent
    Business Alliance the ME has 3 benefits:
    direct,indirect, and induced." Typically
    local independent businesses circulate a
    higher % of sales locally compared to
    absentee-owned businesses." Thus if
    money goes to shareholders in France the
    ME of this money has virtually no effect
    on the local,western or Canadian
    economy.The money that farmers will
    never get because of lost sales, high
    handling costs...(lower net commodity
    prices) has a huge negative impact on
    our economy.
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