Just like the human body’s health depends on a steady circulation of blood, a local community’s economic health depends on a steady circulation and recirculation of the same cash. If that blood leaves the community, the city suffers.
That’s what The New Economics Foundation’s researcher and author, David Boyle, said in a TIME Magazine piece on how buying local boosts an economy. Money spent locally rather than big box retailers, online, and non-local services, is the difference between a thriving community and a ghost town.
WHERE DOES YOUR DOLLAR GO?
Over the last ten years, the research group CivicEconomics.com has studied local merchants in 15 different cities in the USA. Their research shows where your money goes when you shop at local vs. non-local business. Here's what they found:
Local spending: 54% recirculates locally
National chains: 21% recirculates locally
Online spending: 2% recirculates locally
That’s for real: spend a dollar somewhere other than local, and the vast majority of that dollar leaves your community with zero chance of coming back. Spend local, and you build your community.
LOCAL BUSINESSES REINVEST
The simple economics of local work like this: when a local merchant, banker, or business owner turns a profit or has to buy stuff, where do they spend that money? Right back into their local community.
It’s a reinvestment in your city: Education, Infrastructure, Local Business.
Become a local tourist
Next time you open your wallet, think twice! Is there a local business you could make your purchase at? You'll be surprised at what you can find local.