The Benefits of Buying Local, is it worth it?
Do you ever wonder how you can make a positive difference in someone’s life?
Sometimes that feeling of powerlessness can render us numb and we often react by doing nothing. I mean what can I do to really bring about a real change?
Well there is something you can do to bring about a powerful change that can make a positive difference and it all starts with changing your buying habits. This small step can drastically change the economic landscape. Let’s explore the impact of that change:
Job Creation – and the need for Skilled Labour
Ever wonder why un-employment is high? A lot of factors could be taken into consideration, but one of the main causes is due to the lack of support from purchasing locally made products.
For example, if a person spends R 1000.00 at a local store about R750.00 stays within the local area. This is because a local manufacturer will hire people from the local area. They will also buy raw materials from businesses that hire people from within the same area. Thus, drastically increasing the employment rate.
Reliance on imported goods also contributed to the reduction of acquiring skills in the manufacturing and supply chains sector. As a result of this, most manufacturing jobs have been declining as companies outsource their skilled labour.
Reduce dependence on Imports – Inability to Compete
We can all agree that it may be cheaper to buy imported goods, but ideally this should be resisted. If demand is high for imported goods, they could become the predominant source of supply. This reliance could result in many small and medium local manufacturers closing because they cannot compete with the imported products price points.
We all love a little bit of competition but if it’s a fight between a lion and a puppy... well, that’s not fair right? Let us save the puppies!
Circulation of Currency – Higher Tax Base
There are many advantages to having money circulate within the local economy. One of the advantages is that the tax base becomes higher. Hence, governments can generate the same amount of money with same or lower tax rates.
This advantage of circulating currency in the local economy creates a broader base of consumers. In more simplistic terms, the more money used in the local economy the more people will have the capacity to purchase products with that same money. If more people are purchasing, more products can be taxed, therefore creating higher tax base.
Less crime and improved economy
“Poverty is the mother of crime” —Marcus Aurelius (121-180AD), Emperor of the Roman Empire
Let’s be honest for a second… I love my country, but I hate the crime. By keeping the demand for local products high, this creates jobs which decreases the unemployment rate and in turn reduces crime. I am not implying that all criminals are a result of not being able to find employment and their inability to provide for themselves and their families, I am saying that a majority of them turn to crime because they have no other option.
Improved economy reduces crime which means more tourists. More tourists with financially strong currencies spending locally and in turn increasing jobs in the tourism industry.
Well done for getting this far into the article considering no emojis or funny gifs were used!
While you are sitting there reading this, just know the ripple effect of how one small change can make a huge difference to YOUR South Africa.
Yes! it is worth it.
- Rustum Noor (Managing Director)