I'm listening to this shop locally commercial where the Mayor states ' every $ spent locally is comming back to the community 7 times over'.
How is it possible that after taxes and operating costs $1 creates $6 more? ... Or does it means that the consumer pays an average of 7 times the value of what he buys? 
i think it goes something like this.
if you bring your car to my shop for repairs, i employ a mechanic to work on your car. my mechanic now has money to spend, and goes to the local quickie mart on the way home, to pick up the shopping list his wife gave him. this helps keep the cashier employed, who now has money to go to woodchucks(that's a local to me small engine specialist) to pay for his weed wacker. now the mechanic at woodchucks has money to go to als auto parts to pick up spark plugs, cap and rotor for his 69 chevelle.....now the counter person has money to go take his kids to the movies.......and on and on, etc.
so it's not turning $1 into $6, but rather he's trying to say that if you shop locally, you keep local people employed, who in turn keep more local people employed.