Economics vs. Finance

imageOver the past few weeks, I have tried to make a very simple point: places have a strategic and economic interest in fostering locally-owned businesses. In addition to creating that unique charm and identity that attracts people and investment, locally owned businesses circulate more money within the local economy and help prevent money from leaking out in the first place. With these economic benefits (not to mention the social benefits associated with business ownership in close relationship with employees and customers), one would think that local governments in particular would be enthusiastic localists, engaging in policies that protect their own business communities from global forces hoping to filter local dollars to a corporate headquarters and on to stockholders worldwide. However, with few exceptions, local government has actively pursued exactly the opposite strategy: Continue reading

Small Town Decline: 1920s & the Rise of Chain Stores

Money MultiplierOne of the things I enjoy most about this blog is being able to test my own ideas and assumptions on the wider world. Any feedback I get, whether harsh criticism, enthusiastic agreement, or fraternal correction, presents an opportunity for deeper investigation and growth. The publication of my recent post, 1940s America – The Start of Small Town Decline, gave me just such an opportunity, as a number of readers wrote to me expressing their belief that the start of small town decline predated the war mobilization efforts of World War II. I agree that while war mobilization may well be one piece of the puzzle it is far from the whole story.  So what are some of the other culprits? To get a more comprehensive view of what happened to the small town, I took another look into our economic past. Continue reading