Oliver's is a small local grocery store chain located in Sonoma County. The employees of Oliver's are local people that live in the surrounding area. The goods that are sold here are primary local made products. The uniqueness of Oliver's is that they support the local economy every time a customers makes a purchase at their store opposed to going to a large retail store. The local economy benefits in many ways, either from the employee earning a paycheck which in turn allows them to live locally or to the local good that was purchased supports that local business and it's employees. The "economic multiplier concept" is the concept of said local business hiring local employees, generating local taxes and selling of local goods. This would be known as a direct effect from the business. An indirect effect would be the employees spending their wages on other local business and thus causing a direct effect for another local business. The induced effect would be a roofer that needed to roof a new grocery store that opened and he went out and spent his money at a local restaurant or local retail store, thus supporting another local store. This concept keeps money circulating locally and the local economy healthy.
There was a study done at Sonoma State University that describes this process in detail and how the Economic multiplier concept works. If other areas got on board this idea of "grow local, shop local, live local" then other local economies would benefit rather than shopping at large retail stores that are interested in share holder gain rather than the local economies well being.
