February 12, 2012

Why Buy Local? A Tale of Two Shopping Trips

300-lake-tahoeby Allison Prater |

This holiday season, many of us may find ourselves on tighter budgets. As we still want to be able to find the perfect gift for everyone on our list, the lure of discounts and “great deals” at Big Box stores may seem stronger than ever. There are many members of our community who feel that they would buy local, if only it were more “affordable”. However, as we look closer at the impact of our shopping choices we discover some hidden costs many of us don’t take into account. We also discover that there are many surprise benefits to buying local:

Money stays in our community and stimulates it. A recent study conducted by The Anderson Development Corporation found that locally owned businesses create 70 percent more economic impact than chain stores. The study compared 10 local businesses in Chicago’s North Side, with ten chain stores in the area. 100 dollars spent at a local business created an economic impact of 68 more dollars being circulated in the community, the chain store’s economic impact was only 43 dollars. Time magazine recently recognized the importance of buying local in their June 2009 issue as well. They cited another independent study conducted by the New Economic Foundation in London, that compared what happens when people buy produce at a supermarket vs. a farmer’s market or Community Supported Agriculture (CSA) and found that TWICE as much money stayed in the community when people bought locally. Local Businesses are also more likely to buy from each other.

Buying Locally creates more community support. Community groups and charitable organizations, receive an average of 250 percent more support from local business owners. When you support local businesses you give back to Non-profit groups, such as the “Children’s Cabinet” and “For Kids Foundation,” both of which receive a portion of their funding from the local community.

Local Businesses are more invested in their communities, because they depend on their support. Many corporations have been able to maintain sub-standard environmental practices, because they know they can just move to counties with more relaxed ordinances. Local businesses offer more personalized service and product selection.

Buying locally keeps the Community Unique and encourages more tourism. Several studies are showing that people prefer destinations that offer a sense of place and history. What many people are calling “ghost towns” towns that were shut down by the arrival of Big Box chains, or “Clone towns” that look like they could be any place, are seeing a drop in tourism. People are also more likely to move to towns that have unique local culture as well.

There are more environmental benefits to buying local. By supporting the infrastructure that already exists around you, you discourage urban sprawl. Less petroleum is used when local resources, such as produce are purchased. Not only is less fuel used to transfer the food, less fuel is required to keep it fresh in the market. The food can also be harvest ripe when it is grown locally which is the optimal way to eat produce. The use of other local resources, such as minerals or animals, provide more jobs with less impact on our carbon footprint.

Local Businesses create more jobs. Jobs that, on average, pay better wages than their Big Box counterparts. When people are paid a living wage, they are able to contribute more to their community, and require less public assistance. The hidden cost of many low prices at the Big Box stores is reflected in the wages of both the factory workers, and the employees of the establishment.

In his book, “In Defense of Food,” Michael Pollan says, “While it is true that many people simply can’t afford to pay more for food, either in money or time or both, many more of us can. After all, just in the last decade or two we’ve somehow found the time in the day to spend several hours on the internet and the money in the budget not only to pay for broadband service, but to cover a second phone bill and a new monthly bill for television, formerly free. For the majority of Americans, spending more for better food is less a matter of ability than priority.” Each dollar we spend is a vote, and we have a responsibility to be informed about what we’re supporting. Let’s cast our votes wisely, and be our own community’s stimulus plan!

References:

  1. Pollan, Michael, “In Defense of Food: An Eater’s Manifesto,” pg. 187
  2. The Andersonville Study of Retail Economics www.civiceconomics.com/Andersonville By Civic Economics, October 2004
  3. sustainableconnections.org/thinklocal/why
  4. www.time.com/time/business/article/0,8599,1903632,00.html

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