An economic impact analysis shows the effect of a new venture on the economy. The economic impact of a new cotton gin in the Mitchell County area of Georgia will be two fold. First the gin will create new economic output and employment in the area through ginning and warehouse fees. These sales will generate additional sales as the plant purchases inputs and the new employees spend their earnings. Further, the suppliers to the plant will increase the purchase of their inputs, thus increasing demand for those items. So the second impact is that the increased sales and employment will then ripple through the economy generating new dollars, jobs, and tax revenues. An input-output model can capture and quantify both the initial impacts of a new cotton gin as well as the secondary or “spin-off” effects of a new gin.