Sean D. Francis

Sean's Tips for Saving the Economy

Posted on 03 February 2009

Tip #37

Buy local.  Money spent at a local business that also buys local products has a higher multiplier effect.   When we are in an economic downturn and are told that we need to spend more money to help the economy but the money is tight or we are losing jobs at a frightening rate, then when we are spending money, we can try to spend it in a way that generates the highest benefit to the economy.

While chain stores lease in local communities, hire local labor, and do buy from other local businesses for goods and services, they work hard to get as much money to their corporate headquarters as possible.

An economic analysis performed in Chicago’s Andersonville neighborhood found that for every dollar spent in that neighborhood at a locally owned and operated store 68 cents stayed in the Chicago economy as compared to 43 cents when that dollar was spent at a national chain.