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5 Takes on Sustainable Local Economies

A significant component of sustainability is  developing and fostering strong local economies. Why? Well, people often conceptualize regional economies using economic base theory, of which one part is the idea of leakage. Basically, when people who live in a community spend money outside of their community or spend money with a business that takes money outside of their community, money “leaks” out of the area. Large retail chains and businesses owned by multi-national firms have high rates of leakage for local economies. Leakage also happens when people travel to another community and spend money there (i.e. tourism, but this helps bring in capital to the tourist destination). So, encouraging locally-owned businesses helps to stem leakage, keeps locally-earned dollars circulating within a community, and generally promotes prosperity and job-creation in the region. This is what makes it literally sustainable.

So what … Continue Reading