The problem is the majority of companies that sell cheaper products here in North America are able to do so because they outsourced their manufacturing overseas. The reason; because labor is much cheaper and therefore increases their profit margin. It's not that they didn't make a significant profit before, it's because they want more profit.
Some large brand name clothing manufacturers would argue that it's because we no longer have enough local sewers to meet the demand, and in order to compete, they outsource the work. That may be true, but if they didn't do it in the first place, we wouldn't have a manufacturing shortage nor an unemployment problem that has left thousands of people homeless. Its because they went overseas that the majority of local manufacturing companies went out of business, leaving 2.7 Million Americans unemployed and this is only between 2001-2004, that total is much higher now. In Canada, between 2002-2008 350,000 Canadians also lost their jobs and again it was due to an increase of outsourced jobs, now that number is much higher as well, and these jobs haven't returned.
So who do you blame? Sure we can blame the government, after all they agreed to the so called free trade deals like: NAFTA, TILMA, CETA and CAFTA. You know several large corporations were involved in getting these deals done, because none of them represented the best interests of the people.
Here's an article that points out 10 reasons why NAFTA: Is Bad for Mexico; Bad for Canada & Bad for the US.
That's hardly ethical... Yes, I will be the first to say: everyone needs to work, but it should be a fair deal that doesn't jeopardize or trade the rights and freedoms of those in one country for another. So you may get a deal today, but in reality, what's the real cost? Are you conscious of where your food, water, clothes, shoes, jewelry, cars or energy comes from? If not, you should be.
You're buying power is significant and extremely influential, your love of shopping or necessity to shop; whether you are male or female affects your: community, environment, your local economy and the ability for families, artisans and locally owned and operated businesses to survive.
When you buy local, 70% or more of what you spend in an independently owned local store returns to your community via wages, rent and taxes. Taxes that help pay for essential services, medical, law enforcement, roads and education. With a large corporation that manufactures overseas 35% or less actually stays in your community. That's a huge difference, no wonder we are facing recessions and hyperinflation, we are being stripped of our jobs, buying power and big business isn't giving enough back.
Here is a list of 10 large corporations that have made Billions of untaxed profit overseas. These tax dollars would contribute to the economic development of the United States. Instead they prefer to hoard the money and let their country fall further into debt and let regular citizens and small businesses flip the bill.
Much like an ecosystem, it's interdependent, and supporting your local economy is necessary for it to thrive and survive. How does this affect you? Well, it could affect your job, your ability to purchase food, pay your mortgage or even your ability to get a good paying job.
Lets look at some of the facts from Industry Canada's Key Small Business Statistics report from July 2010.
Small businesses account for 2/3rd's of all the jobs in:
- Healthcare 89%
- Construction 75%
- Forestry 74%
- Food and Accommodation 66%
- Professional Services 75%
To top it off: Accommodation and Food, Construction, Manufacturing, Professional Services and Wholesale Trade Account for 68% of all jobs in small companies. Small local businesses also collect Billions of tax dollars per year for the government. Despite this, small businesses don't get the same tax breaks and tax incentives that the government gives their larger competitors.
It goes to show, locally owned and operated business owners are directly responsible for the majority of the jobs and economic growth in local communities due to big businesses outsourcing our jobs and manufacturing overseas.
In this post, I'm primarily using Canada as an example, it doesn't matter if you live in the United States, Mexico or any other country in Europe, Africa, South America or Asia: people need to support businesses that are local. Their contributions and importance are largely underestimated and are essential to your community.
If we don't support local, by shopping local we are in fact sabotaging our own economy and even our own success.
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