Did you know that you, as a consumer, have power over the economy? You and the many other consumers in this country enjoy what is known as consumer sovereignty. Consumer sovereignty is a pillar of the American Enterprise system. It states that it is the consumers that dictate the production of goods and services.
So, how does consumer sovereignty work? Consumer sovereignty exists due to two factors in our economy: the consumers’ right to choose, and competition. The right to choose is a consumer right that states that consumers are to be able to choose from a wide selection of goods and services. Competition makes it so that businesses are always competing to attract as many customers (consumers) as possible. Essentially, since the right to choose allows consumers to choose from a wide range of goods/services, it allows them to choose which businesses to purchase from. This then determines which businesses make a profit and succeed and which don’t and fail. Competition then causes businesses to change their products and/or services so that they can attract more consumers. These changes can include: introducing a new product, ending the production of a failing product, tweaking an existing product to make it more successful, etc.Through this process, consumers essentially determine which products are produced and remain on the market, and which products fail and no longer stay in the market. Through this influence on production decisions, consumers have great power over the economy.
However, as you might have heard from a certain web-slinging superhero’s uncle, “With great power there must also come great responsibility”. Your choices regarding which brands and stores to buy from has a great impact on the economy. This means that you, as a consumer, ought to look at what businesses you’re supporting through your purchases. Unfortunately, many of the big brand corporations that have products on store shelves aren’t the best choice for your money and often harm our economy. For a multitude of specific reasons that I won’t go into here (check out the rest of our blog posts to see why), local businesses are the best choice for your money. Essentially, they are not only the best for you personally, but also benefit your community and the entire economy. In order to see how you can support local businesses, take a look at our Buy Local Campaign. Our campaign actively promotes local, non-chain businesses through fun, interactive, and interesting activities. Be sure to follow our Instagram @buylocalcampaign2021, Twitter @buylocal2021, and Facebook page @buylocalcampaign2021 to learn more! Also, make sure to check out the rest of our blog posts to see more about buying local!