the local multiplier effect

It’s a question we’ve all been asking ourselves…what is the incentive (in specific economic terms) to buying local other than an ego boost (for some) and an intangible certificate of authenticity? Thanks to The Institute for Local Self-Reliance, there’s justification. Independent businesses within cities that have a very active and enthusiastic “buy local” campaign realize greater success 3.5% more than cities without a push for local. Additionally, their holiday revenues were 4.4% higher (note: this is where the authenticity part comes in- always a good selling point). This all translates to the local multiplier effect– independent businesses spend their hard earned cash at other local businesses instead of sending the money off to some far away HQ in Fargo, North Dakota where it disappears into more R&D, more shares of stock, upgraded technology, etc, etc. It’s not that big business is always the enemy, but if you love your local coffee shop, be careful the next time you head to Starbucks to fill up with a Venti. Love for local.

 

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