Why Buy Local?

The benefits of shopping at a local business instead of a chain store have been thoroughly studied and documented. A 2008 study conducted by Civic Economics and commissioned by Local First Grand Rapids found that when 100 dollars were spent at a nonlocal business, only $43 stayed in the community and the rest leaked out. When 100 dollars were spent at a local business, $68 stayed in the local economy. A 2003 study conducted by Civic Economics and commissioned by Austin Independent Business Alliance concluded for every $100 spent at a chain, $13 remained in the community while $45 remained when spent with home town businesses. More similar studies can be found here.

The benefits of keeping money in the community and patronizing local businesses are numerous. Locally spent money generates more local tax revenues leading to improved services. Local businesses employ more people, contribute to local charities, and bring unique character to their communities, making the community a great place to live and visit. Outside chain stores, on the other hand, have been known to artificially lower their prices only to raise them again once the competing local businesses close down. For every two jobs created by a chain store, three are lost from the local businesses closing down. A 2006 Pennsylvania State University study found that counties with many Wal-Marts in 1987 had higher poverty rates in 1998 than counties with few or no Wal-Marts. The study commissioned by Local First Grand Rapids found that a 10% shift in spending away from chain stores and into local businesses would create nearly $140 million in new economic activity and 1,600 new jobs. A conscious choice to shop locally can have enormous positive repercussions for your community.

Our community currency:  the silver promise

A widely accepted community currency increases local spending and rarely leaves the community.  A community currency made of silver goes even further than a paper local currency to revitalize a local economy.  Silver currencies have low startup and maintenance costs, self-regulate, and serve as a hedge against inflation.  When people spend local currency, it stays and circulates within the community, bringing with it all the benefits of local spending.  When dollars are spent locally, even though more of them remain in the community than when those dollars are spent at chain stores, a significant number of locally spent dollars still leaves.  In contrast, when people spend a local currency, virtually all of it remains and re-circulates within the community.  In other words, a local currency ensures local commerce.

Last Updated (Sunday, February 6, 2011 — 4:59 AM)