David Hsu at Complexcities recently pointed me to a dialog happening over on Grist on the whole “local” thing. It (along with its long trail of attendant comments) deserves some attention.

Doing this would leave America and the world desperately poor.

I’m not going to go too deep into analyzing Avent’s arguments, which are fairly well-reasoned but seem to miss the point.

First, few people are saying we must produce absolutely everything locally.

Second, there is a world of difference between putting barriers on trade and catering to consumer demand for locally produced goods while reaping the benefits of local production. While Avent admits the issues are “complex”, he conflates the very idea of “free trade” (which in our already very-planned economy means as few as barriers to trade as possible, but enough as necessary) with a style of production that is an intentionally myopic, globalized race-to-the-bottom. He implies we can’t have one without the other. . . If we’re “buying locally”, then we’re supporting “a world of regional trade blocs,” he implies, and giving up specialization of labor entirely.

Here: If consumers demand local stuff, so be it. Producers will then produce locally. But consumers can’t afford to buy local stuff if no one is working on ways of producing local stuff cheaply. But producers won’t work on ways of producing locally cheaply if consumers don’t demand it.

Demand = willingness + ability to pay. Businesses should say to their customers, “You work on the ability to pay part, I will try to make something you’re willing to pay for. I will devote myself to this place and time and do my damnedest to make something of lasting value.”

PSFK.com’s Guy Brighton puts it reasonably from a consumer’s perspective:

Maybe what we need to do is apply a level of common sense: ensure that we import enough to maintain a decent diet, avoid foods that would be out of season locally and choose local when offered the choice. ::link

The question is, then, is there inherent value in local production and local buying/selling. In other words, does it help your business do what it set out to do in the world to make, sell and buy locally? If your

business exist to serve a place and its people (financially and otherwise), then yes. You will have a deeper connection to your customers, grow their trust and loyalty, know their wants, and be able to respond more agilely to market changes (before your distant competition can bring something to market). You will know the cities and the lands around them, what is good or bad for them, and how it affects the people.

You will be the first company in your industry to go carbon neutral, and it will be cheaper because you don’t have to buy offsets for shipping. You will take advantage of the urban landscape, you will commute less, your designers, engineers, and manufacturers will know each other and communicate better, face-to-face. You will know where your materials come from, where they are taken and who assembles them into value-added goods. You will never accidentally have a sweatshop in your value-stream.

Businesses serve their workers and their communities by serving their customers. They do a better job if all their workers and all their customers are in their communities.

Which leads me an open-ended question, posed by Avent:

If the world would be better off, if production would be more efficient, with more localized industry, then why aren’t companies already doing it?

American Apparel almost fits the bill, but they just have half the equation (in that they manufacture in the U.S. but ship worldwide). I’m going hunting for other success stories.

In summary: I’m definitely not saying we shouldn’t buy things from other countries. We will. And if we can make money making it better here, we will do that too.

(painting: Soutine)

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