"Every time money is re-spent in your local economy, it is like new income for the person who receives it. The more money is re-spent, the higher the multiplier effect." (1)
The Food Loop Game is inspired by the work of the New Economics Foundation on the multiplying power of active re-spending.
The premise is that the more actively we try to spend and re-spend our money locally the more money there is around for people to continue spending.
The premise is that the more actively we try to spend and re-spend our money locally the more money there is around for people to continue spending.
Whilst the principle is very simple, no-one has managed to really track the local spend and re-spend in near real time. The FLoop Game is designed to do that, or at least attempt to do it. If it works we will be breaking new economic ground, which should bring its own benefits in terms of attention from other places.
And, as any business person knows, getting peoples attention (hopefully in a positive way) is essential for trade.
And, as any business person knows, getting peoples attention (hopefully in a positive way) is essential for trade.
Spotting where money leaks away
Drawing attention to those places where money leaks out of our local economy is a first step to recognising an un-met demand for local goods and services. After all, if we are prepared to pay for something why cant we produce and manufacture it locally?
The flip side of this recognition is making it clearer which local businesses are super efficient at local procurement. When Norfolk District Council did a simple LM3 audit in 2004 the discovered that a contract worth £72,000 given to a local contractor yielded a local re-spend value of £154,580 after three 'rounds'.
In contrast a much larger contract of £120,000 given to a non-local contractor only generated £147,160.
The lesson? Less money spent wisely within our local system is of more value than more money spent in such a way that it easily leaks away.
The flip side of this recognition is making it clearer which local businesses are super efficient at local procurement. When Norfolk District Council did a simple LM3 audit in 2004 the discovered that a contract worth £72,000 given to a local contractor yielded a local re-spend value of £154,580 after three 'rounds'.
In contrast a much larger contract of £120,000 given to a non-local contractor only generated £147,160.
The lesson? Less money spent wisely within our local system is of more value than more money spent in such a way that it easily leaks away.
Rewarding the Positive
Food Loop is only interested in giving time and attention to those local food businesses that most actively demonstrate that they are re-spending your hard-earned food money well, with other local food businesses.
That means they will benefit from more publicity which will bring them to more peoples attention which, hopefully, will bring them more sales.
So one way to view the Food Loop points that you earn is as votes for your favorite local food businesses. And, if they continue to keep your Food Loop Pounds in local circulation they will continue to earn you extrea points as well.
But that a subject for a different article.
That means they will benefit from more publicity which will bring them to more peoples attention which, hopefully, will bring them more sales.
So one way to view the Food Loop points that you earn is as votes for your favorite local food businesses. And, if they continue to keep your Food Loop Pounds in local circulation they will continue to earn you extrea points as well.
But that a subject for a different article.
Illustration of a positive feedback loop