The Importance of Buying Local

It amazes me the lack of consumer awareness regarding the economic impact of buying products and services from independently owned, locally businesses. In a time of recession like this, it is very important to help one's local economy by purchasing as much as possible from local, independent businesses.

A survey done in 2004 showed that $100 spent locally created $68 more dollars of local activity while $100 spent at a chain store only generated $43. That's almost 60% more local stimulus. (Check out http://www.newrules.org/retail/news_slug.php?slugid=269 for more info on this or if you want to read the whole study see http://www.civiceconomics.com/Andersonville/.)

The one encouraging thing I have seen is that if you speak to most people about these types of issues, they seem to grasp the concept very quickly and often will react very positively. I read a book about a year and a half ago called Big-Box Swindle by Stacy Mitchell. Even growing up in a family business as I did, I never realized the unfair advantages and political consolations that Big Box stores enjoy. I had always thought that the chains just did it better and bigger than us and that was how capitalism worked. This book blew my mind. When you start to read about the tax breaks and illegal business practices of these chains it will make your blood boil. When you read about the true story of how Wal-mart began it will shock you. I always had thought Sam Walton was like the poster child for the American dream....

Another great point made in the book was about the way local business owners often go out of their way to support the community. As a result, by buying their goods and services, you are also ensuring the longevity of your community. My favorite quote in the book is "Few people consider the impact of their choices on the community. 'I asked a teacher recently where she goes for supplies. She told me Staples,' Tracy said. 'Then I asked her where she goes for donations for school programs. She named an independent business.'"

Go figure.