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The Economics of Buying Local
By Denise Blaha, New Hampshire Carbon Challenge
Buying Local Made Easy Purchasing goods and services made in New Hampshire and Massachusetts has never been easier. New Hampshire Made lists an impressive array of products and services--from furniture to organic baked goods, kayaks to fleece jackets to business consulting, all made by craftsmen and professionals who take pride in their work. Products can be ordered online, and discount coupons are often available. Massachusetts residents can tap into the Mass Grown website for a comprehensive listing of agricultural products, farmers markets, and specialty foods in Massachusetts , as well as a calendar of upcoming events. |
Most of us recognize that when we spend $9.95 for a shirt at a "big box store," we can't possibly be providing those who made the shirt and then got it to us with a decent wage, nor any real safeguards to our environment. As consumers, we get what we pay for, and sub-standard prices can only mean lower wages and other cost-cutting measures. Although it's hard to overlook the convenience, selection, and savings some chain stores offer, the negative impact of these retail giants on our local economy and environment also cannot be ignored.
Three independent studies confirm that money spent at a locally owned business stays in the local economy, benefiting residents and area merchants through higher wages and the purchase of local goods and services. Locally owned businesses create more jobs, pay their employees more, and have a lower environmental impact on surrounding ecosystems (less sprawl, congestion and habitat loss) than large retailers located at a strip mall or stand-alone establishment.
For every $100 spent at a locally owned business, $45 remains in the local economy; for every $100 spent at a big-box store, only $14 stays in the local economy. Neighborhood businesses are invested in their communities. They bank locally, advertise locally, purchase their inventory from local manufacturers, and hire local accountants and repair people. In contrast, products, advertising brochures, and supplies used by large retailers are generally purchased externally and trucked to many stores.
Local merchants also spend more of their profits in the local economy and give to area charities at a much higher rate than the chain retailers. This, too reflects the investment and connectedness local businesses have to the community. These businesses also add to the distinctive character and culture of the region, benefiting tourism. As Richard Moe, President of the National Historic Preservation Trust put it, “When people go on vacation they generally seek out destinations that offer them the sense of being someplace, not just anyplace.”
By choosing local products when you can, you will be "voting with your wallet" for a better environment, economy, and community.
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References:
Sustainable Connections: Why Buy Locally Owned?
Assessment of the Direct, Indirect and Induced Economic Effects of Chain Stores on the Regional Economy of Cape Cod . FXM Associates, Mattapoisett , MA , June 2005. Available From: http://www.gotcommunity.org/pdf/EconomicImpactStudy.pdf
Economic Impact Analysis: A Case Study Local Merchants vs. Chain Retailers. Civic Economics, December 2002. Available from: http://www.liveablecity.org/lcfullreport.pdf
The Economic Impact of Locally Owned Businesses vs. Chains: A Case Study of Midcoast Maine . The Institute of Self Reliance, September, 2003. Available from: http://www.newrules.org/retail/midcoaststudy.pdf