I've been thinking about the economy for quite a while. We, the people, seem to be waiting for a handout, watching to see what everyone else is doing, going about our lives, scrimping and grumbling, and just hoping it will all "get better".
High gas prices last year hiked everything up *a lot*, and prices didn't come back down with the gas prices. Prices at the grocery store are insane, power and gas went up and aren't coming down. People, including us, have cut way back in spending on non-necessities and on luxury items. This is hurting small businesses, many of whom are really struggling or have even gone out of business.
This is not news.
The gut reaction is to raise your own prices and cut spending wherever possible. However, one of the few things I remember from my economics class in college - ages ago - was that in a healthy economy, every dollar spent, is respent, respent again, and respent some more. One dollar put into the system can end up making 6 to 8 times that in a chain of sales.
So, to counter my tendency to stop all unnecessary spending and reduce that dollar in the economy to only a dollar in sales, and instead of waiting for someone else to do "something", I'm going to do my little piece.
Our farm sells a few things - sheep, wool, roving, chickens, pigs, Chaffhaye, some services. For the rest of 2009, I'm going to CUT my prices by 10%, PLUS take 10% to spend in the local economy on items that I've cut out.
Hopefully, this will do a little bit to put more money in the economy. My customers save 10%, 10% of our sales will go back into our local economy, and I get a little luxury. Sounds like a Win-Win-Win to me!
I challenge you all to do the same or something similar. If you buy something from us, please spend the 10% you save on another local, small business. Think about challenging your suppliers, customers, friends and relatives to do the same. My 10% will make a very small difference. Many 10%'s will make more difference. Let's make a difference together.