[Vision2020] why buy local

[Bill London]

Reprinted below are two editorials from the Daily News.  The one at the bottom of this message (by Henry Johnston) appeared on Tuesday, March 3.  Because of the inaccuracies in that editorial, Buy Local Moscow responded.  The response, by Louise Todd (Buy Local Moscow president), appeared Friday, March 6, and is reprinted below.  BL


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Moscow-Pullman Daily News

by Louise Todd, president of Buy Local Moscow

March 6, 2009

Henry D. Johnston's commentary (Daily News, March 3) misrepresented the goals and purpose of Buy Local Moscow, and I appreciate this opportunity to set the record straight.

Eighty-six locally owned, independent businesses like mine (I am the co-owner of Mikey's Gyros) have joined together to create Buy Local Moscow. Our member businesses are located in the Palouse Mall, in downtown Moscow, at the Eastside Marketplace and elsewhere around town. We also have begun the Friends of Buy Local Moscow for the individuals and franchise retailers who support our goals.

We began this nonprofit organization to let people know the vital role of locally owned businesses in our community. Local businesses help maintain Moscow's vibrant social and cultural core, because these are the people and the businesses that are fully invested in our community and help form Moscow's unique character and appeal. They are more than just your neighbors and friends.

Recent economic research shows locally owned, independent businesses build a sustainable community. Researchers have discovered that increasing sales at local businesses keeps more money circulating within the community, builds local charitable giving and increases the number of jobs available to local residents.

Here are some examples of that research. In a 2008 study of the Grand Rapids, Mich., area (Kent County), (www.civiceconomics.com/localworks/), researchers discovered that if just 10 percent of the purchases by the 600,000 local residents there shifted from corporate or franchise retailers to independent businesses that 1,614 new jobs would be created.

The authors noted this "one modest change in consumer behavior: a 10 percent shift in market share from chains to locals across the retail landscape" would have a "tremendous potential economic impact." If that market shift occurred in Latah County (with 1/20 the population of Kent County), that could result in the creation of 80 jobs.

In a recent study from Maine (http://newrules.org/retail/midcoaststudy.pdf), researchers found that three times as many dollars spent in locally owned businesses circulated within the community in comparison with dollars spent at corporate retailers. Local businesses relied primarily on local suppliers and local services like banks, attorneys, architects and Internet providers.

On the other hand, corporate retailers relied primarily on out-of-area suppliers and services. The professional needs of those businesses were handled by distant corporate offices, and a significant portion of the money from those retailers ended up in the pockets of corporate administrators and stockholders. Only the local payroll remained.

The authors of that study conclude that when local residents "spend $100 at a big box retailer, their purchase generates $14 in local spending by the retailer. That same $100 spent at a locally owned business generates $45 in local spending, or three times as much."

The same study showed that local businesses donated between two and four times as much to local charities as corporate retailers.

Many similar studies, as well as books and magazine articles on this topic, are available through the recommended readings link at the Web site of the American Independent Business Alliance (www.amiba.net/).

Given today's global financial meltdown, every job and every business seems to be at risk. We all are worried. We want to ensure our families and communities are stable and protected. We all want to build a healthy community, to create meaningful local employment and to maintain Moscow's social and cultural vitality. Every shopping decision to buy from locally owned, independent businesses helps increase the flow of dollars within the community, boost the rate of local charitable giving and strengthen local employment. Every purchase from a locally owned, independent business is a contribution to a vibrant and sustainable future for Moscow.

For more information about our organization or about joining us, please go to our Web site: www.buylocalmoscow.com.

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Moscow-Pullman Daily News

March 3, 2009

by Henry D. Johnston

Moscow Mayor Nancy Chaney recently delivered her State of the City address and provided a pretty optimistic outlook on our economic future. She explained that one of the consultants hired by the city seemed to think that Moscow's economy has "remained relatively stable" and that we're not facing "the boom and bust cycles" that have caused havoc around the country.

I disagree and provide you now with a partial list of businesses that were located in Moscow and have since closed their doors:

Ted's Burgers; Marco Polo Imports; Wild Women Traders; Cramer's Home Furnishings; Brown's Furniture; Mark IV Motor Inn; Waldenbooks; Creighton's; Archie's on the Square; La Bella Vita; University 4 Cinemas; Lefty's; Homestyle Laundry & Dry Cleaning; Becky's Fabrics; Fiesta en Jalisco; S&P Hobbies; Gottschalks; and Rudy's Burgers.

Oh, and let's not forget Moscow's only full-line General Motors dealership, Karl Tyler Motors, which announced its plans to close up shop Friday. That is a pretty phenomenal event considering the dealership has been in business under different owners for more than 40 years.

Chaney once said that Moscow was able to be "selective" about what businesses we allowed in our town. 

I'm glad to see that concept is working so well for us.

During her address, the mayor also announced population growth of 3,000 residents over the course of eight years. That's equivalent to about 375 new residents per year, every year. The mayor believes that by limiting population growth Moscow can escape "rash decision making" and the undue influence of "special interests."

Overall, I think our local economic problems really lie in what we consider a "local business."

According to the Buy Local Moscow organization, they consider a business to be local if they are "locally-owned independent businesses that are headquartered and located in Moscow, Idaho." The group also believes that local is better because "a new chain store typically is a clone of other units" and that the "store's profits are promptly exported to corporate headquarters." 

I guess by using that logic we can strengthen our local economy by not shopping at Moscow's third largest taxpayer, the Palouse Mall. Who really cares if we've got an empty big box and nearly 1,000 people out of work? All those chain stores that fill the mall were only exporting their profits to the home office.

Second, no more car dealers will be allowed in Moscow because, well, they aren't a truly local business to begin with. All the name-brand dealerships are franchise operations anyway and with Karl Tyler out of business and James Toyota across the state line, we've only got two more dealers to go before Moscow is car free.

Along those same lines, since Busch Distributors isn't located in Moscow (rather across the border in Washington) and imports its fuel from outside sources, petroleum-based products shouldn't be purchased either unless Steve Busch starts to drill and refine them in Moscow.

Finally, since the Moscow Food Co-op is the only nonchain grocery store in town we'll have to drive Safeway, Winco and Rosauers from the city limits.

Do you see what I'm getting at? 

In one way or another every business is local. It must have a local manager and employees who are paid salaries, which are, in turn, spent in the local economy. Many of our chain stores are owned by good corporate citizens who are consistently donating back to the community through organizations such as the United Way.

Overall, chain stores and locally owned stores both have a role in contributing to Moscow's economic vitality. The mantra in town need not be "Large corporations bad, local good." This slogan might more productively be substituted by "Any business is good business."

The sooner that concept is understood the sooner any business, local or otherwise, can grow and provide a truly broad-based and stable economy, as the mayor desires.


Henry D. Johnston is manager of an area retail store.


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