Updated: Oct 31, 2021
It’s become an inside joke in my house that I am starting a revolution. I’m not sure about starting one, but I do plan on participating in the one that is going on all over the United States as you read this.
A second American Revolution; grab your musket!
Since the onset of the coronavirus outbreak, it’s been clear that one of, if not THE, hardest hit segment of the economy was going to be independent and locally-owned retail businesses.
So concerned was Uncle Sam about the effects of the outbreak on this segment of the economy that when everyone’s favorite uncle started printing money to save the economy from certain doom, he included hundreds of billions of dollars of cheap loans and grants to address grave concerns for how long the segment could even survive without government action.
Uncle Sam was right to be so concerned!
At the onset of the Covid-19 outbreak, there were over 2,000,000 Americans employed in locally owned retail sales positions.
But locally owned businesses provide more to local economies than just employment, as if that wasn’t enough! Money spent in locally owned stores drives the economy in other ways which big retail will never be able to match.
The multiplier effect.
The multiplier effect of money is a term economists use to describe the proportional increase in value of dollars spent. Simply put: When you spend a dollar it doesn’t die; some of it gets spent by the person you gave it to! The calculation of the value of that dollar as it bounces through the economy from person-to-person is the multiplier effect and every dollar does it!
But they don’t all do it equally.
Money spent shopping in a national retail chain multiplies after you spend it. In-fact, every $100 you spend in a big box store is worth $114 to the local economy.
And that’s cute!
Especially when compared to the bawdy success in that regard of independent retailers. When you walk into your local paint, hardware or any other type of locally owned retail store and drop a Benjamin, it’s worth $145 to the local economy. TRIPLE the multiplier effect of a big box. Because we keep our money local.
The American economy needs independent retailers!
So to all the independent retailers who invest in my community, I am committing to investing in you! By giving you the first shot at ANY consumer dollars I spend.
Since the start of the outbreak I have found independently and locally owned vendors for most of our food and other home needs. Trips to the supermarket have been replaced by trips to the butcher and produce store. Trips to Target have been replaced by trips to the local hardware store. As a family we are finding that we have few needs that cannot be met while shopping at locally-owned independent businesses.
What Are You Doing?
As paint and hardware retailers you are also consumers: you bought all the products in your store! You buy paint, brushes, spraye