Date Posted: 7/20/2012 6:41:37 AM
Posted By: moff J Membership Level: Silver Total Points: 485
Many of us are now used to the common statement of "buy Kenyan, Build Kenya". Could this be just like any other cliche being popularized by the government or is there some truth in it? In order to understand this, it is important to look at some facts. The Americans are some of the most patriotic people in the world. They are the kind that will do anything to promote their country and boost their territorial integrity. It is this patriotism that has made USA the biggest economy in the world. This patriotism also extends to their buying patterns. They are the kind of a society that is very loyal to their local products. Other countries may think that the US has a superiority complex by shunning the products from other nations, but this is what has made them reach where they are. As long as they have a given product locally it is better to purchase from the local manufacturer than import it.This is how "buying local" works: Once you buy a certain product from the local market, it means that the money stays within the economy. It is therefore available for investment in other sectors of the economy. The velocity of money is also enhanced as the unit of money gets to exchange among many hands. Those endowed with economic knowledge will concur that an increase in the velocity of money boosts economic growth.The living standards of the local manufacturers is also enhanced which means that they are available to provide more labor supply in the economy. Buying local also gives a country a favorable balance of trade. A country like Kenya has a negative balance, this means that we are spending more on imports than on exports. Buying local means that the expenditure on imports is minimized and this will enhance our balance of trade which helps in strengthening the local currency.However a buyer, whether for a local product or imported product, will only purchase a product which they are satisfied will give them the highest utility and provides value for their money. Local products thus have to be of high quality and of competitive prices to match the imports.Therefore, in conclusion it can be said that buying local could be the recipe for economic and social prosperity. Let us therefore build our country by promoting the local industry.
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