Economic Interdependence

Building and real estate is a good example of one of the major industries in our country that creates a product - houses, offices, etc. and taps into many aspects of the economy. Let's take a look at some of the steps needed to complete a house and how many parts of the economy this venture is affected by and affects. It is an example of interdependence - how one industry depends on the work of another. In our global economy, materials and even labor may come from other countries and thus we depend on these countries and they on us.

	One of the first steps in building the house is to get capital or money to finance the project - to pay for the materials, the labor, the plans, the legal paper work. This will be obtained through a bank or other lending institution.
	An architect will be hired to draw up plans for the house.
	These plans will need to be submitted to the town or city government for approval. If anything is amiss, unsafe, not in line with community regulations, the plan must be altered. Lawyers will be needed to handle the legal paper work at many stages of the project, including the final sales of the property.
	Advertising in the papers and other media will be needed to obtain workers and also to sell the house.
	Raw materials such as trees must be used to make the lumber that will be used in the construction of the house.
	Other manufactured materials such as bricks, nuts, bolts, nails, etc. will need to be purchased from hardward supply outlets.
	Lumber and other materials purchased must be transported to the building site.
	Laborers such as carpenters must be hired.
	Water lines will need to be brought into the house and plumbers hired to pipe the house.
	Electricians will need to wire the house for power from the local utilities.
	Phone lines to allow communications will need to be installed. Some of the laborers that work on the house may be members of labor unions.
	Many homes depend upon oil and gas for heating which comes from oil wells.
	Landscapers must be hired to plant trees, bushes, seed the lawn, etc..
	Painters and decorators will put the final touches on the appearance of the house.
	Home furnishings and housewares will need to be purchased from retail outlets.
	The house is finally complete. At this point the owners will continue to need the services of many to maintain the house and keep it liveable.