- What are two weaknesses in the buy local argument?
When buying is kept local, the prices will be higher and there will be less variety. Without trade outside of local markets, the specialized trades do not increase in size which in turn lowers productivity. The money doesn’t usually stay local after the purchase and the product isn’t 100% local to begin with. The input items to make the product often come from elsewhere.
2. After watching the video are you still going to make an effort to buy local on occasion? Why or why not?
I will continue to try to buy local sometimes because I live in a small community and when I can, I like to shop at the store my neighbor owns, or I will purchase goods from local craftsmen. I know now that local doesn’t really mean local, but I like knowing that I can help with the income of my friends and neighbors.
3. What economic strengths of buy local are not mentioned in the video?
Because the items are not being shipped overseas and trucked to your town, there is he economic strength of saving the cost of shipping the items. As well as the environmental implications of the fossil fuels that are used to move products. There is also less packaging necessary because often local items are made and sold in smaller packages. This lowered input cost could lower the price of the product.
4. From the perspective of Colorado, is trade with Wyoming different from trade with China? Why or why not? Keep in mind that Colorado doesn’t trade with Wyoming or China. Individuals in Colorado purchase items produced in Wyoming (coal probably :-)) and in China (maybe a t-shirt).
Trade with Wyoming is different than trade with China because Wyoming is closer and part of the United States. There is also a difference in the goods produced in both places.
Source
Boudreaux, D. “Are We Better Off If We Buy Local”. George Mason University. https://mru.org/courses/everyday-economics/buy-local-movement-shop-small-business
My Journey into Macroeconomics 