The Velocity of a Loonie: The Invisible Math of Burlington’s Prosperity

In economic circles, there is a concept known as the Velocity of Money. It sounds complex, but it’s actually a simple measure of how fast a dollar moves from one hand to another within an economy.

When you spend a dollar, that isn’t the end of its journey; it’s just the beginning. The question for us in the Halton region is: Where does that journey take place?

As someone who has spent a decade analyzing digital and local business ecosystems, I’ve seen that the "economic footprint" of a local purchase is vastly different from a global one.

The Leakage Problem

When you spend $100 at a global online marketplace or a massive "big box" retailer, that money experiences leakage.Most of it—roughly $86 to $89—leaves our community almost instantly. It goes to head offices in other countries, to global shipping conglomerates, and to distant shareholders. It’s a one-way street.

The Local Multiplier: 66 Cents and a Dream

Contrast that with a local Burlington shop. Data from the Canadian Federation of Independent Business (CFIB) shows that for every dollar spent at a small business, approximately 66 cents stays right here in our community.

This is where the Velocity of Money becomes a superpower:

• You buy a gift at a boutique in the Village Square.

• That boutique owner uses your dollar to pay a local graphic designer to update their signage.

• That designer uses the profit to pay for music lessons for their child in North Burlington.

• That music teacher buys dinner at a local bistro on Lakeshore.

In this cycle, your $100 has actually created hundreds of dollars in local economic activity. This is the "Local Multiplier Effect."

Why This Matters for 2026

A high velocity of money creates Economic Resilience. When our dollars stay local, they fund our parks, sponsor our youth hockey teams, and keep our neighbors employed. It makes Burlington not just a place to live, but a self-sustaining ecosystem.

At Burlington 365, we aren't just trying to "get you more customers." We are trying to increase the velocity of every dollar in our city. By making it effortless to discover and support local entrepreneurs, we are quite literally keeping the lights on for our neighbors.

The Strategy for the Sophisticated Consumer

Next time you’re about to hit "One-Click Buy" on a global app, ask yourself: Where do I want this dollar to end up? If you want it to build a better Burlington, keep it in the loop. The math is simple, but the impact is monumental.