HireHERE, a community advocacy group "committed to promoting Chattanooga-area industry," released the results of an economic impact study "showing that every dollar invested in local businesses leads to a dramatic increase in local spending and tax revenues."
The study, conducted by UTC economist Dr. Bruce Hutchinson, shows that every dollar invested with local companies multiples 2.6 times as it circulates through the Chattanooga-area economy, the group said.
Furthermore, for every $1 million of local investment that goes to a local company rather than a company from outside the area, Hamilton County takes in approximately $23,000 more in taxes, it was stated.
“This study provides hard evidence for what common sense tells us: when local companies win contracts, local spending and local tax revenues increase,” Ron Tanner, a HireHERE spokesman, said. “Every dollar invested locally has the impact of $2.60 as local workers spend it in local establishments. The employees of those establishments then spend it in other local business. The money circulates numerous times through our economy. Increased tax revenues mean increased and improved services for local residents.
“On average, a Tennessee teacher makes about $43,000, a police officer makes $46,000, and a fire fighter makes $41,000 a year. An increase of two million in local contracting annually pays for another teacher, another police officer, another fireman.
“With the billions of dollars of investment coming into our area, we should easily be able to expand our tax base and provide the vital government services that will make the Chattanooga area an even better place in which to live, work, and raise a family.”