It Matters Where Goods Go, Not Money

Commenting on this piece by Steve Horwitz (reblogged at Cafe Hayek), a commentator writes:

In actuality, the money isn’t really being kept local [by big businesses compared to local businesses].

To the extent this is true, by question is “so what?”  Money is not what matters.  What matters is goods and services that can be exchanged for money.  If a store sells the necessary food I need, what’s it matter if the money stays in Fairfax or goes to France?  If a store sells me clothing, what’s it matter if the money stays in Virginia or goes to Vanuatu?  What matters is my wealth has been increased.

If more goods and services are flowing into a community, even if dollars are flowing “out,” that is a good thing.

One thought on “It Matters Where Goods Go, Not Money

  1. “What matters is my wealth has been increased.”

    Exactly! Your goal is to increase your wealth through astute purchases. Local businesses want to improve their wealth as well so they can make astute purchases. However, local businesses are likely to use persuasion techniques other than compete with nonlocal competition based on price or quality of the goods provided. Thus, they come up with the “buy local” persuasion technique in order to get you to improve their wealth at the expense of your wealth.

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