The Local Economy.

Whenever local people/politicians talk about economic growth for my small southern city, in the next breath they will talk about bringing companies to the city to provide jobs. The biggest advantage is the cheap labor force. Special tax breaks for the company also get involved. The plus side to this is the cash injected into the local economy from outside in the form of wages gives a net gain to the economy.

On the other side of the equation, the big box retail stores that come here are a net drain on the local economy. The stores are in the business of making a profit, which means more money must come into them than they leave, which means money flows out of the local economy through them. These stores are dependent on distribution chains that spread around the world. Dollars spent at Wal-Mart not only make their way to Bentonville, Arkansas and the Walton families pockets, but most go all the way to China. Good for the Chinese. Us? Not so much.

Also, in a very real way, we are dependent on these stores to feed, clothe and supply a myriad of other things for us. If they stopped, for whatever reason, where would that leave us?

If we keep our dollars circulating in the local economy we will all benefit. It would be of much greater benefit to our local economy if we were to move to a more locally oriented and sustainable economy, dependent on ourselves and our own talent and labor.

/eom