1. Re-circulation of money ~ The concept is simple: If you spend $10 at any coffee shop, a certain percentage of that money goes to the barista behind the counter, who we will assume lives near by. If the owner of the shop lives locally, a little more of that money stays within the community. It’s the same for the roaster who roasted the beans, the dairy farmer who provided the milk for the latte, the owner of the building, etc… The more locally situated the people involved in the transaction, the more money that stays in the local economy. Conversely, if those folks live somewhere else, that money goes, well, somewhere else. Now if that barista and the dairy farmer decide to go out for a couple beers, that money once again has the opportunity to re-circulate in the local economy, flowing through the bank accounts and wallets of friends, neighbors and relatives.
2. Creates a more diverse and stable job base ~ A local economy based on a variety of industries and service sectors creates a more stable economic base. One only needs to read the latest news stories about the devastating effect on towns as large employers move on in search of lower labor costs.
3. Local business helps create local culture ~ David’s Pizza or Pizza Hut, Runner’s Soul or Sports Authority, Rocket Coffee or Starbucks, Neato Burrito or Taco Bell. Which of these make you think of Spokane? Local business not only help create our community’s identity, they generally sponsor more local events, are board members on local non-profits and are key partners in iconic events such as Bloomsday and Hoopfest.
4. Local control of local economy ~ Local business owners are less likely to relocate and are more invested in our community. The natural overlap of social and economic ties also allows the values of neighborliness, generosity, and self-reliance to blend with our community’s traditional support for diversity, individuality, and respect for the natural world.
5. Increased control of environmental impact ~ Local business owners are more likely to care about the direct environmental impacts their business has. A business is more likely to be conscientious of how they handle their waste streams when their customer base is breathing the air, drinking the water and living on the land they affect.
6. Creation of new industries ~ As local businesses and residents make a concerted effort to look closer to home to meet their needs, new opportunities for entrepreneurs will become available. As an example, repeated studies have shown the economic benefit of localizing food production is community-wide. It not only creates new jobs on the farm, but previously non-existent packaging and retail opportunities are also created. The same basic concept could be applied to anything from construction salvage to reclaimed consumer electronics.
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