In the latest EconTalk podcast, Don and I talk about the economics of buying local, an idea that seems to have an eternal appeal. There is nothing wrong with buying local. But buying local because it "keeps the money in the economy" is the road to poverty not wealth for a community.
On buying local
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Okay, this is a take that I find much easier to accept than your last try.
Although I mosty agree with you and Don, I would have liked you to comment on the environmental cost of global vs local trading.
Although I like the Basquiat examples, your discussion touched not at all on what I think are called "the externalities." Should I buy lemonade from my neighbor's child, or walk past and get a national brand from the store, and then give the child the difference as a handout?
Would you argue that the condition of the Amish is evidence in support of your position by characterizing them as "relatively impoverished," or would you see their apparent long-term satisfaction with that condition and willingness to pay (apparent) high opportunity costs to maintain that condition to be evidence that they prefer it to the alternative?