Shop local, it pays. Literally.

Did you know that money spent at local merchants circulates thorugh the local economy 15 times, which is more than twice that of non-local businesses.  When economists talk about the velocity of money, many people assume it refers to how fast they can spend it (that’s a budgeting issue, and a topic for another time). What it really means is how fast money circulates through the local economy. In that case, the faster the better. When money circulates more quickly, it passes through more hands giving more people the benefit of using it and what it has purchased for them. 

That’s what buying local and supporting your local stores and businesses is all about.

Of course, shopping locally isn’t just about money – it’s about making sure communities and downtowns stay vital, attract residents and give youngsters a reason to stick around when they get out of high school or college. It’s about supporting people – your neighbors and friends. But, keeping the money local where it will do the most good, it will help achieve those altruistic goals.

Money spent at a locally-owned business stays in the local economy, benefiting residents and area merchants through wages, and the subsequent purchase of local goods and services. Locally-owned businesses not only create jobs, pay their employees more and add to the tax base, there’s an environmental benefit to surrounding ecosystems by having less traffic, sprawl, congestion and unproductive land use. Plus, non-profit organizations receive an average 250% more support from smaller business owners than they do from major companies.

The clearest way to make the point about the value of shopping locally is with a quick math lesson. One study estimates that shopping at a local independent store instead of a chain or box store means 68% of what you spend immediately stays and circulates through the community; shop at a chain, and that number drops to 43%. Shop online at a national site, and 0% stays here. Another study shows that for every $100 spent at a local business, $45 remains in the local economy; for every $100 spent at a big-box store, only $14 stays in the local economy. Either way, buying local has big benefits.

 Why buy local:

1. More job opportunities.
2. More diverse stores and businesses.
3. Vibrant, thriving towns and neighborhoods.
4. Better home values.
5. More support opportunities for non-profits and schools.
6. Better involvement in local activities – boards, charities, volunteering.

 Keep your money working where you live – buy local.

This entry was posted on Thursday, December 8th, 2011 at 2:31 pm and is filed under General Insurance Topics. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.