The motto of buying local can greatly boost the economy. When you buy local, you’re doing more than just feeling good about your choice, you’re also helping to boost your local economy. Many researchers are examining the flow of money and how it can help to boost the local economy. They’re finding that it can have a profound benefit to keeping the money in a local area in that local area and improving the communities in and around the local area.
Buying Local Keeps the Money Local
On the basic level, buying local keeps the money local. An independent economic, The New Economics Foundation, that is based out of London shows what happens when consumers support the local agriculture that is community supported vs when they choose a big box store where the money doesn’t stay in the community. Purchases that are bought locally will help to keep the local economy alive and well according to NEF researcher and author, David Boyle.
According to Boyle, a lot of the local economies are faltering due to the fact that not enough cash is flowing in. As a direct result of people buying from the big box stores vs the local mom and pop stores on the corner. The money that was spent at the other stores isn’t staying in the community and it isn’t helping to support the local economy. As a direct result, the community is becoming a ghost town and will soon be devoid of the neighbourhoods and the shops and services that have made the area what it is.
Such communities should want to be self-sufficient and they should want to shift the balance so that they are becoming more self-sustaining. They must begin to produce more on a local basis and if possible, find all of the necessary raw materials locally as well. The service sector with the likes of laundry business and self storage business, such as Blue Box Storage, on the other hand, excel at promoting local businesses.
Local Products More Costly?
There is concern about the local produce and products being more costly, after all, the big box shops thrive on giving you low prices by buying in bulk. However, when you consider local businesses give you local jobs, improve the economy by keeping the money local and improve the way of life for small towns and their residents, it’s all worth it.
There is also the resilience that buying local brings to a town. In truth, many small businesses are just a generation away from being national producers. The economic framework can help to retain such skills and talents and boost the local economy. As the prices of oil rise and foreign-made goods are becoming more costly, the prices will rise to meet the needs of consumers. By retaining our local businesses were able to manage those costs and keep them low. This translates to lower prices and a better economy for everyone all the way around. Local businesses are more flexible and more ready to meet the needs of the local community. Local communities don’t function by being isolated, they function by supporting one another and focusing on the local trade that will create a diversity for the small business owner and jobs for the local residents. Local businesses are more ready to adjust to the ever-changing needs of the market and its conditions.
The More People Money passes Through, the Better the Economy
Buying local also helps to keep the money in the local area. As it passes through the town it remains in the town and will help to boost the economy and speed up the monetary circulation. The more people that it passes through the better the economy.
The economy was stable as recently as the 80s and in every previous decade. However, the velocity has taken a serious nose dive and decreased as the money has begun to funnel into the larger financial institutions and spread through the business sector that isn’t local. This money continues to visit foreign locations and it doesn’t return to the local community.
As the local community limps through a recession, they are beginning to feel the crunch. This message will help the local community and its residents to put their money back into their own economy and focus on their needs, not the needs of the big box stores or the large financial institutions.