by Rob Higgin A local economy is either through-put or cyclic. Rural communities tend to be through-put, exporting raw materials, importing food and finished goods. A cyclic economy is more independent. More of its needs are met by members of the community. Money circulates more times around before it leaves.
Question one: Does sustainability mean more local manufacturing as well as food production?
Local manufacturing and local food are generally more expensive. Canadians support a much larger superstructure of white collar workers than most other nations. It is factored into the Canadian cost of living. It means that our earnings have to be higher to put us over the threshold of viability. It means that imported goods and food will probably always be cheaper.
A strong local cyclic economy needs a broad base of purchasing power, more members of the community with more money to spend.
Historically, a variety of solutions to the struggle for purchasing power have been tried: unions, taxation and guillotines to name a few. There have been moderate successes with each.
Cooperation may, however, be better than force or taxes.
Some communities are experimenting with local currencies, money created by the community for the community. Local currencies facilitate job creation and act as a leash on regular money, keeping it in town for more spins around. Local money may also help the move toward green and ethical industry.
Question two: What can we do to tip the balance away from cheap imports toward “made in Powell River?”
One of the effects of 20th century trade and commerce was a shift away from community toward self-absorption. Today the individual trumps community on almost every count. We are out of balance. This shows up not only in our purchasing patterns but also in our investments. Two hundred years ago if someone had tried to convince you to invest your money in a scheme 2,000 kilometres away you’d have laughed him out of town. Today it’s hard to find someone who won’t send his/her money out of town.
Millions of dollars owned by Powell River residents are invested in RRSPs, mutual funds, shares and direct ownership everywhere else in the world. It’s an exciting game of chase but does little good for the town we live in.
Consider a “100-mile investment portfolio.”
I have spoken with many people who wish there was a way to invest in local initiatives but they want the comfort of a governing body or organization providing oversight and accountability.
I am not an expert in these things so I invite all who are involved in the investment industry to consider the creation of a “Powell River Mutual Fund.” All of its investments will be here in Powell River creating advantage and opportunities right here.
Questions posed:
1. Does sustainability mean more manufacturing in Powell River and are we willing to work with the environmental and social consequences?
2. How can we tip the balance of viability away from cheap imports in favour of “made in Powell River?”
3. How can we attract the investment dollars needed to make these things happen?
To continue this discussion, please contact me. Meeting place and time will be announced pending interest.
Rob Higgin lives south of town and can be contacted at 604.487.1119 or through email [email protected].
