Sankey Diagrams of Local Economic Flows
|Sales||Business Spend||Local Wages Spend||National Co Spend|
A number of assumptions have been made to simplify the diagram without (hopefully) detracting from the overall picture.
- It is assumed that any profit either goes to pay the owners wages or is reinvested in the business, leading to purchases. If money is saved in the bank this will lead to a smaller percentage of money being spent but will not change the pattern of how it is spent.
- It is possible that a National Businesses will spend money back into the Local Economy, causing a flow from Nation Purchases to Local Purchases but it is assumed this are insignificant. Similary for Overseas purchases, even more insignificant.
- Overseas companies do not purchase anything nationally or locally, national companies do not purchase anything locally (will fix this later)
- the pattern of spending for iteration 2 and 3 are the same as in iteration 1