The Local Multiplier Effect

Think Local First, GoLocal First

By: Kelley Rajala ,Terry Garrett 04/28/2009

The Local Multiplier Effect is a very valuable, hidden feature of our economies. The term refers to how many times dollars are recirculated within a local economy before leaving through the purchase of an import. Famed economist John Maynard Keynes first coined the term "Local Multiplier Effect" in his 1936 book The General Theory of Employment, Interest and Money.

Here's a Prezi that you can view full screen.  Navigate through the path by clicking the forward and back arrows.

 

 

Here's the Idea

A Little Goes a Long Way

And a Bonus

Here is a study of the local economy done in San Francisco to illustrate the Multiplier effect at work.

 

Comments (3)

I know I'm prejudice here - but I'd like local businesses to support local media as well. A true partnership reaching our residents can work wonders. Many people these days don't want their news filtered through huge companies and their editorial staff. I notice that the Press Democrat is working hard to woo local readers with more local stories. But one newspaper - even though it's a daily - can't cover a broad range of local issues. It takes the partnership of all the other local media resources to accomplish the task. From local weeklies to local monthlies, our local media are the way to reach local readers who want information on their HOMES! What's going on in our own back yard - and about our neighbors - continues to be what fascinates us the most!
Yes - I publish a LOCAL monthly - the Sonoma County Gazette - and I expanded out of West County (West County Gazette) into a broader circulation simply because it's such a challenge to get local businesses to support their local media. With a broader audience, my paper has greater appeal - it's that reach thing!

posted by Vesta Copestakes on 9/01/09 @ 12:15 a.m.

Such a sound strategy. We need to support each other and make sure there are enough local jobs to keep everyone employed. I particularly like the ecological aspect of this principle.

I would like to see Green Sangha Sonoma County partner with Go Local to "table" in front of the Santa Rosa mall on high commerce days, (Black Friday, after Thanksgiving; Valentines Day, Saturday before Mothers Day, Father's Day and all the big Monday holidays, such as Memorial Day, when the stores have their big sales.

Green Sangha has done this on two previous occasions. We received donations of free reuseable bags, light bulbs, and information from locally owned stores like Kindred, to give away to people who approached the table. It is a way to promote the good work our organizations are doing, and to redirect people to shop down 4th street rather than at corporate-owned stores.

posted by Debra on 6/27/09 @ 03:02 p.m.

I believe, Bruthas and Sistas!

posted by Roger Brown on 6/27/09 @ 01:38 p.m.
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