Local Purchasing - Alternative Viewpoints

Alternative Viewpoints

The argument that 'buying local' is good for the economy is questioned by many economic theorists. They argue that transportation costs actually account for a tiny fraction of overall production prices, and that choosing less efficient local products over more efficient nonlocal products is an economic deadweight loss. Moreover, the community as a whole does not actually save money because consumers have to spend so much more on the more expensive local products. Karen Selick argues that the buying local trend is just a watered down version of protectionism, and would not benefit communities as proponents envisage.

Additionally, organic local food tends to be more costly so this is not an appealing option to consumers who are shopping on a budget. Small-scale farmers do not receive government subsidies and are not able to support their business on prices comparable to those of industrial-scale food production, so they must sell at higher prices to make a living. Therefore, in order for the appeal of the local agriculture movement to overcome the economic cost, people must be willing to invest in it, which is unlikely when apparently similar products are available in grocery stores for a lower cost. Despite this, distribution costs of expansive food trade must also be factored in; with increasing gas prices, it becomes more expensive to ship food from outside sources.

Besides these arguments against purchasing locally, society has now reached a point where globalization is so deeply embedded, it is difficult to turn back, and impossible to remove completely. Globalization has fostered a higher level of dependency, requiring international trade for products that may not be otherwise available, particularly produce that is grown out-of-season. Limited local accessibility is indicative that trade on a global scale is a necessity in the modern economy. This transcontinental sharing of food results in an exchange that continues to be both profitable and sustainable, provided that the government support and consumer demand for these products persists.