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Many benefits in shopping locally
By Julie Ann Marra/Wick Communications
SIERRA VISTA - If you spend $100 in Cochise County, is there a difference from spending $100 in Tucson?
The answer might surprise you.
In the economic world, there is the multiplier effect, which shows the amount of economic activity generated by spending $1 in a certain place. Cochise County's multiplier is 1.5085, said Robert Carreira, director of the Center for Economic Research at Cochise College.
So going back to the initial $100. That amount will actually generate $150.85 of economic activity. How?
Carreira said that one thing shopping locally does is create jobs. When money is spent at county businesses, the company turns around and uses that money to pay its employees, who then go out and spend the money at other businesses, thus creating more jobs.
"When people in Sierra Vista shop locally, then we benefit from it," he said.
Furthermore, that keeps the unemployment rate down. When the unemployment rate rises, Carreira said that higher crime rates, strain on families and health problems can result as a consequence.
Another factor to consider is sales taxes. In Sierra Vista, the sales tax is 7.85 percent. Carreira said that of that percentage, 5.6 percent goes to the state, 0.5 percent goes to Cochise County and 1.75 percent goes to the city.
On the $100, an additional $7.85 will be paid in taxes, and $1.75 will go to the city. That amount can add up as more people shop locally.
"If you keep your money here, you're helping the infrastructure of Sierra Vista," said Susan Tegmeyer, president of the Greater Sierra Vista Area Chamber of Commerce.
The sales tax revenue helps pay for police and fire personnel, parks and leisure, and all other city run operations. Local businesses also pay property taxes that help fund schools.
The chamber of commerce launched its "Shop Local" campaign this past week to encourage residents to stay here and shop instead of traveling to other places, like Tucson.
"We realize there's an economic downturn at the moment, and we're always looking for ways to help the business community. That's what we're here for," Tegmeyer said.
Local businesses also support the community by donating to charities, nonprofits and other organizations like Little League teams, Tegmeyer said.
"You will never find a more giving community than right here in Sierra Vista, especially for its size," she said.
Tegmeyer also said that people often used to go to Tucson and other places because they felt they couldn't find what they were looking for locally.
However, the chamber has more than 700 members covering a wide variety of interests, such as scrapbooking, candy, kitchen decor and computer stores.
The chamber encourages residents to call if they have questions about finding a product or service locally. The chamber makes an effort to know what its members do and do not do and are happy to point people in the right direction.
One last thing to consider when deciding where to shop is the price of gas spent and the amount of time spent. The price of gas is steadily rising, and shopping locally can save gallons and allow people to spend more in other places.
Carreira called the amount of time spent shopping an opportunity cost. The time spent driving somewhere else could be spent doing something else like playing with children or working overtime. That time spent must also be considered.
In conjunction with the "Shop Local" campaign, whose slogan is "Save Gas, Save Money, Shop Local," the chamber will be issuing a "Shop Local" shopping bag filled with coupons for local businesses at the upcoming Annual Home & Business Expo on Sept. 13. Look for more information on the Expo in the coming weeks.
On the Net
Greater Sierra Vista Area Chamber of Commerce: sierravistachamber.org
Herald/Review reporter Julie Ann Marra can be reached at 515-4680 or by e-mail at julieann.marra@svherald.com.
The answer might surprise you.
In the economic world, there is the multiplier effect, which shows the amount of economic activity generated by spending $1 in a certain place. Cochise County's multiplier is 1.5085, said Robert Carreira, director of the Center for Economic Research at Cochise College.
So going back to the initial $100. That amount will actually generate $150.85 of economic activity. How?
Carreira said that one thing shopping locally does is create jobs. When money is spent at county businesses, the company turns around and uses that money to pay its employees, who then go out and spend the money at other businesses, thus creating more jobs.
"When people in Sierra Vista shop locally, then we benefit from it," he said.
Furthermore, that keeps the unemployment rate down. When the unemployment rate rises, Carreira said that higher crime rates, strain on families and health problems can result as a consequence.
Another factor to consider is sales taxes. In Sierra Vista, the sales tax is 7.85 percent. Carreira said that of that percentage, 5.6 percent goes to the state, 0.5 percent goes to Cochise County and 1.75 percent goes to the city.
On the $100, an additional $7.85 will be paid in taxes, and $1.75 will go to the city. That amount can add up as more people shop locally.
"If you keep your money here, you're helping the infrastructure of Sierra Vista," said Susan Tegmeyer, president of the Greater Sierra Vista Area Chamber of Commerce.
The sales tax revenue helps pay for police and fire personnel, parks and leisure, and all other city run operations. Local businesses also pay property taxes that help fund schools.
The chamber of commerce launched its "Shop Local" campaign this past week to encourage residents to stay here and shop instead of traveling to other places, like Tucson.
"We realize there's an economic downturn at the moment, and we're always looking for ways to help the business community. That's what we're here for," Tegmeyer said.
Local businesses also support the community by donating to charities, nonprofits and other organizations like Little League teams, Tegmeyer said.
"You will never find a more giving community than right here in Sierra Vista, especially for its size," she said.
Tegmeyer also said that people often used to go to Tucson and other places because they felt they couldn't find what they were looking for locally.
However, the chamber has more than 700 members covering a wide variety of interests, such as scrapbooking, candy, kitchen decor and computer stores.
The chamber encourages residents to call if they have questions about finding a product or service locally. The chamber makes an effort to know what its members do and do not do and are happy to point people in the right direction.
One last thing to consider when deciding where to shop is the price of gas spent and the amount of time spent. The price of gas is steadily rising, and shopping locally can save gallons and allow people to spend more in other places.
Carreira called the amount of time spent shopping an opportunity cost. The time spent driving somewhere else could be spent doing something else like playing with children or working overtime. That time spent must also be considered.
In conjunction with the "Shop Local" campaign, whose slogan is "Save Gas, Save Money, Shop Local," the chamber will be issuing a "Shop Local" shopping bag filled with coupons for local businesses at the upcoming Annual Home & Business Expo on Sept. 13. Look for more information on the Expo in the coming weeks.
On the Net
Greater Sierra Vista Area Chamber of Commerce: sierravistachamber.org
Herald/Review reporter Julie Ann Marra can be reached at 515-4680 or by e-mail at julieann.marra@svherald.com.
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