Investing Locally

After the 2008 crash Mary and I moved all of our investments, meager as they were, into the Steinbach Credit Union. We felt then that there was a security in investing locally, and although much of banking mystifies me, I still feel, not only more secure investing locally, but also more integrated doing this. In the end our well being is, and will be, more dependent on the health of local institutions than in global institutions. Or perhaps better put, our global institutions are more likely to fail us than local institutions. Steinbach is somewhat distinct in that the largest financial institution in town is the credit union, and the largest fuel supplier in town is the Ste. Anne Coop.

In the years since Mary and I have moved from Niverville to Steinbach, I have also been distressed by the globalization of Steinbach grocery outlets. The closing of Vogt's IGA was part of this process, but the process really ratcheted up when Penner Foods and Economy Foods sold out to global chains, and once that was done, Safeway and Superstore joined them. Walmart is about to join them. This has been followed by the sale of Derksen Printers to a global buyer, also Loewen Windows and CT Loewen.

So recently I come across this new book: Local Dollars, Local Sense, by Michael Shuman. Here is one synopsis.

Americans’ long-term savings in stocks, bonds, mutual funds, pension funds, and life insurance funds total about $30 trillion. But not even 1 percent of these savings touch local small business—even though roughly half the jobs and the output in the private economy come from them. So, how can people increasingly concerned with the poor returns from Wall Street and the devastating impact of global companies on their communities invest in Main Street?
In Local Dollars, Local Sense, local economy pioneer Michael Shuman shows investors, including the nearly 99% who are unaccredited, how to put their money into building local businesses and resilient regional economies—and profit in the process. A revolutionary toolbox for social change, written with compelling personal stories, the book delivers the most thorough overview available of local investment options, explains the obstacles, and profiles investors who have paved the way. Shuman demystifies the growing realm of local investment choices—from institutional lending to investment clubs and networks, local investment funds, community ownership, direct public offerings, local stock exchanges, crowdfunding, and more. He also guides readers through the lucrative opportunities to invest locally in their homes, energy efficiency, and themselves.
A rich resource for both investors and the entrepreneurs they want to support, Local Dollars, Local Sense eloquently shows how to truly protect your financial future—and your community’s.

You don't need to buy the book to get the argument. Here is a lecture Shuman gave https://vimeo.com/37995406 . Other stuff is online.