Locally owned businesses can help communities thrive — and survive climate change

Grist
April 26, 2013

By Stacy Mitchell

Cities where small, locally owned businesses account for a relatively large share of the economy have stronger social networks, more engaged citizens, and better success solving problems, according to several recently published studies.

And in the face of climate change, those are just the sort of traits that communities most need if they are to survive massive storms, adapt to changing conditions, find new ways of living more lightly on the planet, and, most important, nurture a vigorous citizenship that can drive major changes in policy.

That there’s a connection between the ownership structure of our economy and the vitality of our democracy may sound a bit odd to modern ears. But this was an article of faith among 18th- and 19th-century Americans, who strictly limited the lifespan of corporations and enacted antitrust laws whose express aim was to protect democracy by maintaining an economy of small businesses.

It wasn’t until the 20th century that this tenet of American political thought was fully superseded by the consumer-focused, bigger-is-better ideology that now dominates our economic policy-making. Ironically, the shift happened just as social scientists were furnishing the first bona fide empirical evidence linking economic scale to civic engagement.

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Stacy Mitchell is a senior researcher with the Institute for Local Self-Reliance. She is the author of Big-Box Swindle and also produces a popular monthly newsletter, the Hometown Advantage Bulletin. Catch her recent TEDx Talk: Why We Can't Shop Our Way to a Better Economy.