Creating Community Wealth

1999-05-06 Thread mcg1

A community organization has much more influence and power in their local communities, 
than they do lobbying public officials in Albany, or the District of Columbia. 
Political power is not a necessary condition for economic advance.

Wealth in a community is created more through the recirculation of money within the 
community than through a large employer employing the residents. Every dollar you 
spend in a local business establishment, as opposed to a national chain store, keeps 
that dollar in the community. The more times that dollar recirculates within the 
community by being exchanged for other locally produced goods and services, the 
wealthier that community will become. This is how wealth is created.

For example, a landlord hires painters, carpenters and other trades, suppliers and 
services. A community organization can approach local landlords and encourage them to 
hire local tradespeople (painters, carpenters, etc.). These tradespeople and suppliers 
can be encouraged and trained from among the community residents and their children as 
they pursue their education and become adults. A painter needs painting supplies, this 
creates an opportunity for the development of a paining supply business, which again 
can be initiated by the residents of the community. The owners of these businesses 
themselves are encouraged to live in the community, and use their profits to pay 
residential and business rent and purchase other locally produced goods and services. 
Similarly, with every other existing business enterprise and economic want and need 
among the residents, business enterprise can be developed to serve these opportunities 
from among the community itself.

If one surveys the businesses that operate within your neighborhoods, one will find 
landlords, grocery stores, small manufacturers and suppliers, and other service and 
dry good businesses opportunities. Each of those businesses purchase supplies and 
services of different kinds. If energy is invested in finding ways for those 
businesses to purchase their supplies and services locally, many opportunities will be 
created for business formations and jobs, the cumulative effect of which will be to 
generate large amounts of wealth.

A community organization can become the nexus through which people communicate with 
each other, connections and referrals made, opportunities pursued, and community norms 
and values reinforced. Such community organizations can intercede in resolving 
conflicts thereby assuring a positive business environment for everyone. For example, 
such a community organization can assist landlords in assuring that tenants pay their 
rent on time and ameliorate domestic disputes, as well as monitoring and assuring the 
quality of the work performed by local trades people and suppliers of goods and 
services. In return, the landlord agrees to purchase local services and supplies.

The more connections among people and businesses that are created, the more businesses 
formations will develop. The effective education of children becomes more important in 
order for them to own and competently pursue these businesses opportunities. The 
educators in the schools could also be encouraged to be residents of the community, 
thereby expanding the integration among residents, business and service providers. The 
more a community organization builds connections among its residents and local 
business and service providers, the greater will be the accumulation of wealth within 
the community.

Each dollar one spends in a national chain store or any business that is not directly 
connected to the community is a dollar that leaves the community and is lost for the 
purpose of multiplying the generation of wealth. The primary goal of a community 
organization is to keep dollars recirculating within the community for as long as 
possible. A broad based community consciousness can be developed around these basic 
economic and social values, and to that extent build cooperative social relationships 
that will contribute to everyone's education and prosperity.

The development of economically and socially integrated communities will influence 
voter participation rates, the ability to build connections with adjacent community 
based businesses and organizations, and ultimately increase political and economic 
power and influence.




Re: Creating Community Wealth

1999-05-07 Thread Ray E. Harrell

So I bought a computer through a local business, (across the street).
Paid much more, expecting good service but his service turned out
to be more expensive than Gateway or Dell and the computer has
defective parts.  I leased it (bought it on time) and in four years will
have paid more than I used to pay for a Plymouth.

The computer store went out of business after fifteen years due
to the impossibility of servicing his debts (translate didn't pay
the rent).   The service contract is moot while the warranty
guaranteed by his dealer turned out to be a Chinese firm
that conveniently doesn't speak English and refuses to return
my calls.  Address?  P.O Box.

So what does all of this mean.  Economie of Scale?  Well
maybe not, I should tell you about my Emerson Air Conditioner
sold by a super store. (don't ask)   So my point is simply that
things are more complicated than the pseudo scientific (translate
economic) theoretical structures allow for in their stories.

I'm reminded of Frank Lloyd Wright's  "Usonia" which turned
out to be a slum while his great cantilevered Masterpiece at
"Falling Water" is now falling down because he didn't put
enough steel inside the cement.   So you can't beat competence
and you always pay for it and ideals are just that, ideals and
not reality.

First, a small town is not a city.  My anecdotes happened
in a neighborhood in NYCity ten times the size of my hometown
in population.   Wright was wrong about small towns and wealthy
folks in the forest.

In my anecdotes the population is largely rental and so is very
mobile with little personal capital to make people behave
economically as opposed to owning a house in a small town.
But "economics" is rarely equipped to take such personal issues
as "community size interactions" into account" (of course they
always register size differences but their sophistication is put
to shame next to the product analysis and consumer targeting
of today's businesses).

As I think about the last statement I am reminded that business
has a conflict of interest in stimulating such sophistication from
government and thus claims that academia and the government
"can't" do it.   "If you want the job done wrong just ask the
government" is the operative script, however they are right since
neither academia or government is willing to show a sophistication
as to the practical basics of the issues.  Both government,
academia and business simply act like capitalists and
communists and argue that the two are so exclusive as to be
impossible together.   The Chinese will probably make fools of
them all.

But if we may consider the small community and if I am once
more delve into personal anecdote illustrate the points.  Communists
talk cities while Capitalists talk towns but both are lying
through their teeth and both is just rhetoric.

So mcgl I should tell you about your ideals which were my
Fathers.  They are not bad but they demand someone with
political power overseeing the workings of the system.  My
Father did it because he was Superintendent of Schools and
considered that what was good for the community was
essential to the funding of the schools.

Unlike your ideal community we were on an Indian Reserve
where there were no local taxes to support the schools.
Everything came from the state and national governments.
But that contribution  from the state was dependent upon
population and so his job was dependent upon the health
of the community, as for the federal government, you had
to know how to "work" them.   So he did a lot of volunteer
work (translate pro bono) outside of his regular job description.

He was active politically & he built the town park from
contributions that he solicited from the local "Lion's Club"
were he was a member.   He taught valuing tradition through
such little things as building the park on the sand lot where
Yankee star Mickey Mantle had gotten his start.

He strengthened the local vocational programs in the schools and
gave the students jobs on the custodial staff while having them do
community R & D (mapping housing subdivisions for the future)
for grades, (they were paid for the custodial work).

He developed a sense of community pride and volunteerism
in all of the graduates.  All of this on a reservation determined
by the U.S. Department of Environmental Protection as the
number one Super Fund Toxic Waste site in the country (worse
even than "Love Canal" which instigated the super fund concept).
It was thoroughly undermined by lead and zinc mining.

He used a partnership between the government (schools) and
the town businessmen within the bounds and balance of good
sense.His stress was upon the cooperation between individuals
and the belief that everyone gained from meaningful work and
that they deserved to do it and be paid for it.  But "in kind"
services were the oil that greased the community and kept people
strong on pride and belief in their ability to succeed.

His job, the leadership role,  was a 24 hour a d