Doing Business locally

In  last week’s column on Local Currency and  in previous ones, I’ve called for the relocalization of our Vashon economy as a hedge against the economic disturbances to come as a result of diminishing resources.  I’d like to continue that discussion.

Right now, many of us know that if you purchase enough stuff at Costco, you can more than make up the costs of extra fuel, ferry fare and your time through savings on your purchases.  Through economies of scale and limited distribution costs, Costco can offer a significantly lower price on a lot of items.  Even a business-disabled brain like mine can understand that.  I have usually defended my own trips to town, especially for more expensive purchases, by saying that I really couldn’t afford to pay the higher prices here.  So, what’s wrong with that?

One problem is in the externalized costs:  pollution from your mode of transport, your lost productive time, lost potential Vashon wages from business not conducted here, costs of taking care of the people unable to find employment.  The dollar you leave on the mainland may come back via a Vashon product sold there, but more likely will come back only via your or your neighbor’s paycheck from a mainland job.  That commuter traffic greatly magnifies those external costs.

Even if our oil supply was limitless, are we truly better off with our current system? The GDP (Gross Domestic Product) is the standard we use to measure how well our nation is doing.  It is the sum of all goods and services delivered, regardless of whether those products represent a net increase in the welfare of the nation.  Such a measure can be very misleading.  Sending jobs overseas to save labor costs is a net plus for the GDP.  So is the building of armaments bound for destruction in the act of destroying property and killing people.  So were the costs of rebuilding New Orleans after Katrina.  Are we better off when we lose jobs, go to war, or fail to prepare for disasters?  We need a new standard for success that does not incentivise negative or unwise social behavior, but does incentivise positive, life affirming decisions.

Using standards that monitor satisfaction, happiness and well being, investing locally, while it may not give you a good, quick return on your monetary investment, will provide what is important: a self reliant community, better service from people you know and will see again and again, more products available because of increased patronage, more incentive to produce for local consumption, i.e., more local production and jobs, more likelihood that we will have what we need in an emergency situation.  And a more or less permanent emergency due to the lack of fossil fuel at some time in our future is, in my opinion, a certainty.

Economies of scale, the idea that costs of production decrease as the scale of production increases, needs to be looked at more closely.  Large-scale production allows for the use of machines that produce more efficiently, while reducing labor costs.  The economies achieved are utterly dependent on cheap and abundant energy, both to run the machines and to distribute the goods to the larger market area.  As energy becomes scarce and expensive, these economies will disappear.  The loss of jobs also needs to be weighed against the end product cost savings, especially when it entails outsourcing work to exploit cheaper labor markets.  This system of production will shrink to esserntials as fuel becomes scarce.

So, is it good to invest in Vashon even though it may not bring the best monetary return on your investment?  Yes, because the intangible benefits of a stronger, self-reliant community is your best long-term investment.  When bad times occur, Vashon will have the resilience to continue to take care of its needs. 

What can you do? Above all, patronize Island businesses whenever you can.

If you can’t find what you need, consider starting a business that will provide that good or service.  Look ahead, research, and make plans to start a business providing goods or services we will need to obtain locally in the coming times of diminishing resources. A bit of foresight, imagination, and courage are all you need to set yourself up with the Island business that you always wanted!  Learn a skill that you can offer your neighbors for cash, local currency, or barter. 

In all cases, make your decisions based on whether you and others will truly be happier, more satisfied, more secure, not just on monetary savings or profit.

Transition Vashon will be showing the last film in its series, The Power Of Community: How Cuba survived peak oil, this Saturday, May 14, 6 -9 pm at the Lutheran Church. When the Soviet Union collapsed in 1990, Cuba's imports of oil were cut by more than half—and food by 80 percent. This film tells of the hardships and struggles of the Cuban people as well as their community and creativity during this difficult time. Cuba, one of the few countries that have faced a massive reduction of fossil fuels, is an example of options and hope.

Stay for community discussion afterwards.  Free, donations welcome.

Comments?  terry@vashonloop.com