Idea Starter: Promoting the Local Economy

In New London, NH, the businesses and organizations that make up Destination New London recently listened to a presentation by Cinda Baxter, founder of the 3/50 Project. The 3/50 Project works to promote a local economy, and it encourages residents of a community to identify favorite local businesses and spend $50 a month in those places: $50 combined, spent in independently owned local businesses.

The impact? According to Ms. Baxter, a former small business owner, if only half of the employed population spent $50 a month, it would generate $42.6 billion in revenue. Of the money spent locally, 68 cents of every dollar is returned to the local community through payroll, taxes, and other expenditures (compared with 43 cents of every dollar spent at a national chain and zero of every dollar spent online, except for salaries of local postal and delivery personnel).

This was, I believe, the first time I've heard of the the 3/50 Project. $50 a month does not seem like a lot. However, as I thought about recent expenditures, most of the money did go to chains.

Now, Ms. Baxter is not saying don't spend money at chains.  Chains have the buying power to be able to keep retail prices at a lower level. In addition, chains can often offer items not available at a local store. What Ms. Baxter is saying, though, is that it is important to also support the local economy.

Ms. Baxter talks about picking three local businesses one would hate to see disappear. That is a good way to look at this proposal. But I think one could also make an effort to spend that $50 locally, even if more businesses are involved.

Let's see how it would work out in practice. Striving to spend $50 a month locally might mean:

• getting a haircut at Norman's instead of at Supercuts (which is what I do anyway).
• getting pizza at Pawtucket House of Pizza instead of at Domino's.
• getting a cup of coffee at Amanda's Kitchen instead of at Dunkin' Donuts.
• getting cheese and milk at Joe's Market instead of at Save-A-Lot.
• getting fresh vegetables at a farmer's market instead of at Stop & Shop.
• eating lunch at Amanda's Kitchen instead of at Burger King.
• picking up some repair materials at Mount Pleasant Hardware instead of at Home Depot.

This type of effort may take a bit of work, but it could also make a difference - especially if a number of people made the same commitment.

For more information about the 3/50 Project, please visit:

      The 3/50 Project

(Thanks to Jessie W. Levine, Town Administrator of New London, NH, who put me on to this project with her weekly town notes.)