The Advantages of Buying Local
In my home state of Vermont, I see countless bumper stickers (some of them actually holding the car together). One of the most common is ‘Think Globally, Act Locally’. Vermont does have a certain brand and identity that should be economically valued. Perhaps the word ‘locally’ needs to be redefined.
We certainly live in a globalized economy. Vermont farmers are competing with French cheese, Canadian maple syrup and Christmas trees, and beef from Brazil. As America’s trade deficit mushrooms and as unemployment rises, perhaps a more ‘American’ definition of local is called for.
During this pandemic, America has lost over tens of millions of jobs and countless more are currently underemployed. Within that loss are numerous manufacturing jobs (see Boeing), many of which may never come back. Economists refer to this adjustment as the forces of Globalization. There needs to be a new economic force, one that is more sensitive to our neighbors, our environment and our nation. Think ‘locally/Americanly’ before you buy. Allow me to clarify the benefits and rationales.
1 – Livable Wage
Fifty years ago the largest company in America was GM. Now the largest employer is Wal-Mart. In the past, we had a company (not that GM is the best business model) that paid excellent wages with benefits, including health care and a retirement package. More importantly, these workers lived a middle class lifestyle with aspirations and opportunities for their kids. Sadly, Wal-Mart can’t come close to filling that void. Besides being the source of many of our imports (and, therefore, lost jobs), they often pay marginal wages with minimal benefits. Presently, over a million Americans work for Wal-Mart. This is the environment that helped to create the term ‘working poor.’ By supporting domestic products and services, we can help provide opportunities for those to escape the Wal-Mart trap. In other words, if you support the concept of a livable wage, then support American companies, especially manufacturers. They pay better than the service sector.
2 – Global Warming
The more we import from developing nations, the less we can control from an environmental perspective. If you are concerned about global warming, we must consider where our products are made. China is now the number one contributor to greenhouse gases (surpassing the USA) and will create greenhouse gases disproportionately faster. By supporting more domestic production, it will be more environmentally friendly and a smaller burden upon our planet.
3 – Health Care
America is quite unique in the world in that we generally offer health care via our jobs. As the cost of health care increases by 2-3 times the rate of inflation (now consuming 19% of our GDP), too many Americans lack adequate insurance. Equally important, millions of Americans either have marginal health care coverage or will soon lose whatever coverage they have. By supporting American industries, especially manufacturers, we are creating better opportunities for workers to secure at least minimum health coverage.
4 – Eliminating Poverty
It is grossly ironic that a large percentage of the poor actually work. Years ago, a job was what you ‘did for a living.’ In other words, you could live from your work. Not any more. Poverty tears at the fabric of society, making it more precarious and insecure. Living paycheck to paycheck creates a society without roots (and a home), and causes considerable stress and strain on family relationships. It is also statistically true that crime drops when an economy improves. Do your part to contribute to an improving economy and society.
5 – Upward Mobility
America has always prided itself on being the ‘land of opportunity’ in which barriers can be overcome with hard work and diligence. Sadly, when struggling to make ends meet, one either doesn’t have the resources or the energies to improve oneself. Countless Americans have historically accomplished the Horatio Alger climb to success. Being a member of the working poor keeps you on the first rung of that economic ladder.
It isn’t easy buying ‘American’. It isn’t always clear what is American or not. We ask that you at least give it some thought. Make sure that an auto truly has American content besides just its assembly (The assembly is only 20-25% of the total value of a car. Ask where the car was designed, engineered, and where most of the parts came from.). This can also be very simply from the beer and wine you order, to the cheese you buy in the store. Remember, that every dollar spent domestically is multiplied geometrically through out our economy. Buy local, think American.