With the annual season of mass spending back upon us, I’ve noticed a number of pop-news articles playing up to business. The general theme being that online shopping is killing retailers and that this is bad for local communities.
While I would agree with the principle argument, reality already fails to align with this point and so I’m drawn to implore to my readers to in fact shop online in the interest of preserving local wealth.
The money trail
Take a given CEO, say Bernie Brookes from Myer, in the fiscal year, 2011-12, he grossed more than a cool $3 million. Assuming a full time employee grossed $40k, which for memory was about the going rate a few years ago, this one bloke, in one city, makes more than 75 times as much as the general store staff.
And then there are the shareholders, that play their part for a share in the profits wherever they happen to be in the world.
Another massive overhead is the products themselves. These are sourced wherever they are cheapest and to get them the cheapest, manufacturing is done where people are poorest and obliged to accept whatever lousy wage on offer.
And then there is the tendency to maximise growth through the amalgamation of companies. Take, for instance Unilever. Look on the package of a range of competing products, say frozen food or hygiene products, and see how many are owned by Unilever.
Regardless of which you buy, the profits largely feed back to international shareholders and disproportionate wages heavily weighted to a handful of individuals, with a comparatively small amount staying local in wages (which themselves are then fed back to this process).
Shopping at retail outlets locally this season is largely draining local wealth away through the lion share of the profits distributed internationally, not locally.
No, these retailers are not the least part interested in local wealth, except for what they can bleed from it.
Don’t shop at retail outlets if it’s cheaper to shop online. Keeping your bank account healthier means that more wealth is kept local.
How to buy special and buy local
There are also other ways you can give special gifts that helps to keep money in the local economy.
For instance, there are small retailers and farmer markets that sell their own goods, especially treats. These can make a great and unique gift. Another personal favourite of mine is experiences. Be it classes in cheese making or baking, dance classes for the aunty and uncle who have been married for decades and might not think about spending time like that together…
There is always something suitable for anyone and these opportunities can be life changing while supporting local business and, being not a material focused gift, can help reduce our tendencies for landfill
More in the video below that I made for last xmas.
(more thoughts to follow..)