Skip to main content

Multiplier Effect

Gauging the Multiplier Effect

Based on $1,000,000 in local purchases, the following chart shows just what's at stake in a community's buying decisions.

  LOCAL BIG BOX
Times the money circulates locally (68% stays) (43% stays)
1 Time $680,000 $430,000
2 Times $462,400 $292,400
3 Times $314,432 $198,832
4 Times $213,814 $135,205
5 Times $145,393 $91,940
6 Times $98,867 $62,519
7 Times $67,230 $42,513
TOTAL $1,982,136 $1,253,410

 

Economic Impact Studies Available on the Internet

The Andersonville Study of Retail Economics                                                                                                                                www.civiceconomics.com/Andersonville/html/reports.html

NFIB Small Business Policy Guide                                                                                                                                                                                            www.nflb.com/object/2753115.html

The Economic Impact of Locally Owned Businesses vs. Chains: A Case Study in Midcoast Maine                                                              www.newrules.org/retail/midcoaststudy.pdf

Procurement Matters: The Economic Impact of Local Suppliers                                                                                                                            www.civiceconomics.com/procurement/

The San Francisco Retail Diversity Study                                                                                                                                                                             www.civiceconomics.com/SF/

The Effects of Wal-Mart on Local Labor Markets                                                                                                                                               www.uvm.edu/~econ/neumarkpaper.pdf