A person is employed by Boeing to build jets in Seattle. In all likelihood, this employee is never going to buy one of the jets that he or she helps to produce. It's not like an automobile assembly line worker, who is building cars, that in all likelihood will be something that our producer will be a purchaser (consumer) of.
Simple, my friend Larry says. The worker at Boeing builds jets because there is a market for people to fly. A lot of people. In fact, flight is an integral part of not merely our transportation system, it is another "vertebrae" in the backbone of our manufacturing economy.
In this example, cross -trickle economics works this way:
A vibrant producer/consumer- business entity/ coporation climate exists which creates resonating demand for other domestic goods and services. In this case, the market demand for airline transportation creates the need for airplanes, which creates the need for workers who in turn are paid a wage.
The wage earner uses some of their income to fly, to visit family, take vacations, attend a business meeting...
It is the same mindset that a person would stop into AJ's Cafe for a bowl of chili or a latte on their way to or from work. Though not directly affliliated with the actual production of the product, AJ's Cafe is the benificiary of the wage earner and his or her ability to be a consumer.
Though some might argue that the purchase of non domestic products also reverborate into our economy, study after study shows that domestic spending contributes a much larger percentage of money that cycles back into the domestic, or local economy.
This is a prime expample of "the philosophy of common sense."
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