Economic Impact of ThedaCare Medical Center-Shawano Goes Around and Around

Posted 21 October 2014 1:14 PM by TCAuthor3

By Carol Ryczek, community relations manager, Shawano Medical Center

There’s a saying that “what goes around, comes around.”

When it comes to cash in the local economy, you can say that what goes around, comes around, goes around, and then comes around again. That multiplier effect is what makes new businesses, or expansion of old businesses, so important to a town.

The multiplier effect is what will make a $50 million project, like the new ThedaCare Medical Center-Shawano, and turn it into over $68 million in economic value by the time it is built and in operation for a year.

To get this number, economists start with the jobs created by the construction and the money that construction contractors, planners and employees spend locally.  As of Sept. 29, the total dollars spent within the community was $646,000. That number keeps growing every month!

In addition to the construction dollars, ThedaCare Physicians-Shawano and Shawano Medical Center remain open, with their staff continuing to support local schools, cities and towns, and businesses.

The multipliers begin as soon as a dollar changes hands. Salaries generate taxes, interest on savings, money invested.  For example, the dollars that a construction worker pours into a tank of gas will pay the salary of the person sitting at the register, who will use that money to take her family out for a fish fry. The added business allows the restaurant owner to add another cook and server. It’s not long before an entrepreneur from a nearby town sees there is a need for more restaurants in Shawano, bringing in another new business.

By the time that first dollar comes around, it has generated $1.23—almost a quarter more than when it started.  When hundreds of thousands of are involved, those additional quarters start to add up fast. But quarters don’t just stack up —they roll, around and around the economy, starting the multiplier process all over again.