The toy is made by a company based in the US, but with manufacturing overseas in China.
If we imagine that the toy has a $25 mark-up, then $25 of the money will be used to reorder the toy. The retailer then banks the money, and the money will then be utilised for a range of purposes. The $50 originates in government money for the extension, and it now lands in the till of the retailer selling the toys. He will visit a store, and we can imagine that he spends $50 on a toy for his daughter's birthday. If we just consider the example of expenditure on consumer items, we might think of a toy purchase for one of the architects. All of these will be paid with government money.
We can therefore imagine his spending, with his income covering a mortgage, payment on a car loan, and fairly large expenditure on consumer items, and consumption of services like trips to restaurants.
#Hell architect rmb professional#
We might imagine that the architect is an average type of individual in a professional occupation, and that he is married with a young family and earns $100,000 per year. Let us imagine that one of the the less senior architects is a man who works on the project for 6 months, and all of his pay is therefore coming from the hospital extension project. For the next movement of the money, I will concentrate on the salary paid to the workers in the firm, and in particular one of the architects. All of these economic activities will be partially supported by the government expenditure. Once in the account, the money will be used for a range of purposes, such as the cost of operations, cost of office space, and legal and other services. Depending on the nature of the contract, money will eventually start being passed to the architect firm, and that money will arrive in the firm's bank account. In this case, I will just track some of the spending as it passes to the firm of architects. Project management groups will be formed, an architect firm hired, contractors will be tendering, and medical suppliers will be preparing for large orders. The reason for this example will become apparent later, and may be a little disturbing.Īs soon as the money for the extension is approved, there will be a surge in economic activity. The example uses the US, but the principles apply to any country. I would like to start this post with a hypothetical item of government spending, such as building an extension to a government building, and track some of the money that might be spent.
0 kommentar(er)
