Agriculture Reference
In-Depth Information
people in their state—keeping the dollars local. It would also
be better for Americans to trade only with people in their
town—keeping their dollars local. It would also be better
to trade only with people who live in their neighborhood—
keeping dollars really local. Why not extend this to just one
neighbor, or to deny yourself trade with anyone, that way
your dollars never leave your pocket? Obviously, narrowing
your opportunity for trade with others means you cannot
have an iPad or any other advanced technology, and some-
one in North Dakota will never eat a pineapple. The local
stimulus argument just isn't logical.
The second argument counters the “keep dollars local”
claim. All imports into and exports from a region must be
equal in value, over time. American exports equal American
imports when measured in dollars, and exports from a small
French town equal imports into that town. The philosopher
and economist David Hume proved this in the eighteenth
century, and his proof is supported by economists today
(note: countries are reported to run trade deficits and sur-
pluses only because the measured exports and imports
don't count investments). This means that when you spend
$100 on imported foods, that $100 does leave the town, but
another $100 returns to the town in the form of exports. So
whenever you import food, that money comes back to the
economy, and all dollars essentially “stay local.” If this were
not true, any town would eventually collect all the money
in the world or completely run out of money—something
we never see happen. Take comfort, reader, that your money
remains in the local economy regardless of whether you buy
local or imported food.
This is an important issue because some influential orga-
nizations continue to push myths about local foods. The
extension service at North Carolina State University urges
its citizens to buy local because it will increase job oppor-
tunities and economic growth when in the university's
agricultural economics department they teach the opposite.
