Small is beautiful

 

There is increasing evidence that market growth cannot continue for much longer.  We are running out of resources and the population is growing too large.  So where to we go from here.

 

We need to start moving toward a sustainable economy, rather than a growth economy. 

 

Just as we talk of buying food locally, we should focus on shopping for all of our things locally.  Not just locally in the sense of “in my backyard,” but locally as in produced here, resold here, or repurposed here.

 

Support guilds, co-operatives (co-ops), and micro producers.  These are also called boutique businesses. 

 

This view was first expressed by E. F. Schumacher in his book, Small is Beautiful.

 

Guilds

 

A guild is an association of people in the same field.  In the middle ages there were guilds of artisans and craftsmen and guilds of merchants.  When mass production was developed, it put the craftsman guilds out of business.  Now these guilds are making a comeback as the market has developed for handmade or small production items.  Many of the artisans and craftsmen of these groups specialize in customized production.

 

Other forms of modern guilds are the Screen Actors Guild, The Writers Guild of America and most real estate firms. 

 

Some medical and dental groups are guilds, sharing testing equipment and business services.  The Bar Association in most states is also a guild in structure.

 

Co-ops

 

Co-ops can be either consumer based or business based.

 

An example of a consumer based co-ops is the food co-op where the members buy in bulk and divvy up the items among the members.

 

Credit unions are a good example of a business based co-op.  They often charge less for loans, pay a higher rate on savings, and support community activities.

 

Many insurance companies are co-ops.  Rates are usually lower as any surplus is used to offset the rates of the members.

 

Art co-ops help artists have a gallery experience at a reduced cost.  The art you buy there may be worth a great deal some day.  Develop a critical eye, start your collection early and buy consistently.

 

You can learn more about co-ops at www.cooperateusa.coop.

 

Finally, invest in sustainable businesses.  When buying stocks, consider reducing the percentage of growth stocks or growth funds in your portfolio .  Instead, look for strong dividend paying stocks.  They are less volatile and generally keep pace with inflation.