Letter to the editor: County is fortunate to have locally-owned businesses

Editor:

Everyone today is talking about inflation, politicians are either being blamed for it, or they claim they are going to fix it. But there are too many factors that cause or influence inflation for just one person or party to fix or influence it. But there is one factor where you, as a consumer, can influence the economy in your community. It is where you shop and spend your dollars. Most of us would like for our money to stay in the community to support our neighbors and locally owned businesses. I was recently talking with a friend about the high pay CEOs of large businesses receive. Just out of curiosity we checked on our local large business. According to MSN, in 2023 the Walmart CEO made 26.9 million dollars which was nearly 1,000 times what the average worker made, $27,642. Where do you think those dollars you are spending in the store are going?

In the past I have read about the Rule of 7 – that a dollar spent at a locally owned business goes through 7 local hands before it leaves the community. While it sounds good for the local economy, there is little research to prove it. One study has been done to prove the point of money staying in the community, the Indie Impact Study Series 2013. It compared the local recirculation of money in ten large cities between national chains and locally owned businesses. No small cities or rural areas were included, but Albuquerque was one of the cities studied. For the national chains in Albuquerque only 13.6% of the money spent in their stores stays in the community, mostly for salaries and utilities. Very little, if any, of the merchandise they sell is purchased from within the community. For a locally owned business, 39.0% of their revenue stays in the community. While this may seem like a small amount, it is three times the amount the national chain leaves in the community.

So, think about where you are spending your money. Some shoppers complain that items cost more from the local providers. But for example, take that lettuce you bought last week at the national chain. How much of it went bad before the week was out and ended up in the trash taking with it your grocery dollars? Lettuce bought at the local farmers market may cost a little more, but it is fresher and will last several weeks, saving you money in the long run. Farmers markets are available in Socorro, Magdalena and Datil.

Socorro County is fortunate to have Bustamante Farms in Lemitar, Rosales Produce in Escondida and Snake Farm Ranch in San Antonio with locally grown produce. And the Magdalena Food Coop will be opening next year. Next time you need to replace your jeans or a thing-a-mabob, check out the local thrift stores. Not only do your dollars stay in the community, but they are helping a local non-profit. As for buying online, no money stays in the community unless that delivery man lives in your community.

So, the next time you are blaming someone for inflation and complaining that your dollar doesn’t go as far, stop and think about where your dollars are going and what you can do to stretch them and improve the local economy at the same time.

Teri Winchester

Magdalena