Should we buy locally?

Question

In my economics book I read a tiny paragraph that made you think about whether or not buying american is such a good concept. To take it to the extreme they say how about only buying locally within our own city. To say that we would only buy what we could produce would make for a very limited market.

what are some thoughts on this?

Answer 1

Buying locally is the best way to do business. That may not mean only in your city, but if you can find the products you need in your local area it's the best way.

Business is not for he faint of heart. When you are producing something, the less problems that can arise with getting your product is a life saver. The closer the product is to you, the better quality control you can do and   you will receive the product faster.

In America, we are all connected. By buying locally, you keep money in your community. When you buy from overseas you give your money to that country's economy,

Think about it. Say you make shoes. You need rubber. You can buy the rubber from a supplier say 50 miles away. You pay that supplier $1000.00. That supplier is then able to deliver your product to you same day or the next day. If you have a problem with the product, you can have the supplier fix it right away or return it without waiting weeks for it.

Also, that supplier takes the $1000.00 that you paid them and they can in turn employ more people to work at their factory. That employee then buys shoes that you made.

By buying locally, you recycle the money in your local community, there will be more jobs and your economy locally will be more stable. Home prices will be strong because people will have the money to afford it.

If you export your money, that $1000.00 will go to another country and that may be 1 less job here in America.

Also, with the falling dollar and the increase in fuel costs, buying at home or buying from a foreign country, the price will equal to about the same.

Even if the price of buying a product is a little more expensive, it's worth it when you look at your community and the country as a whole.

Answer 2

Two thoughts:

1.  "Only " and "never" are concepts that have limited utility in describing desirable actions or outcomes.  One might better say "seldom" or "usually" with the likelihood ideally distributed like a bell curve.

2.  One of the great challenges in describing an economically desirable course of action, or in comparing alternative courses of action, is to determine and price all of the elements contributing to cost.  As one example, advocates for seamless global interaction sometimes ignore transportation costs or treat them as negligible: as energy costs (particularly fossil fuel costs) transportation costs become more significant.  Future comparisons may need to take into account the cost of cleaning polluted water or air.  Another element in costing is what might be deemed social costs.  If an aspect of production (e.g., child labor) is stipulated to create negative consequences for a society, can that cost be properly ignored or discounted by distance.

Answer 3

Let's take a step back, if you can buy a widget for $500 or $250 which one would you buy?  Would you consider where it is made at that point?  Yes it is good to buy American because it keeps jobs here, but as a consumer I'd rather pay less.  

America needs to move forward in what we are producing, making new things or make old things better.  China closed their boarders and decided to produce everything within and look where it got them.  

Answer 4

How could you consider not buying American a good concept? If you spend American dollars on something produced elsewhere you haven taken US Dollars and basically given it to another country, where is the US benefit?

Additionally, wouldn't something freshly produced within say 50 miles of your home (for instance Tomatoes) taste better and be of better quality than "truck-ripened" Tomatoes from Mexico?