In Austin, Small Business is Big Business -everyday

November 17, 2011

Economy, Occupy

On November 26th you can make a huge impact by shopping small on ‘Small Business Saturday’…one purchase, one purchase is all it takes. -From American Express’ ‘Small Business Saturday’ campaign

Americans, especially Austinites, have an affinity for entrepreneurs and the character small businesses bring to the community, which is why it is no surprise that one of the largest credit card companies in the world is behind “Small Business Saturday“. This Saturday will be the 2nd annual and it comes at a low point in Americans’ confidence in our financial system and in the midst of the Occupy Wall St. movement that was in great part inspired by that same lack of confidence. Despite the progressive nature of Austin the Occupy movement hasn’t been particularly headline worthy or boisterous. One reason for this is Austin has weathered the recession better than most major US cities despite its large gap in wealth disparity. But why? In the words of current Austin Mayor Lee Leffingwell, “small business is big business in Austin”. I think its safe to attribute Austin’s economic success to its commitment to community and pre-Occupy movements like the famed Keep Austin Weird that surfaced as a response to perceptions of over-commercialization and chain-ifacation of the city.  They had clearly tapped into something, a 2003 study published in the Austin Chronicle on the effects of a new Border’s bookstore next to locals Book People and Waterloo Records found, “each dollar spent at the local stores would generate three times as much Austin economic activity as would a dollar spent at Borders”. That Borders was never built. The bottom line is Austin is a place people want to live, spend their money and as a result businesses in touch with this community know the importance of reinvesting back into the city. In other words the citizens, aka taxpayers and consumers demand that money be reinvested here.

The Occupy movement on the other hand hasn’t made a lot of specific demands but it has been asking citizens to fire their banks and hire a local Credit Union. I guess there aren’t many local credit card companies, but I wonder if anyone on the American Express marketing team realized the irony in possibly tapping into some of this same sentiment? It recalls the Capital One commercials that feature Alec Baldwin after he personally expressed opposition to bank bailouts in his Op-Ed on the Occupy Wall Street movement. (Capital One Financial Group received 4 billion in bailout funds)

I have been saying for a while now that the only way we can kick the dust off our economy is by exercising some demand-side economics. Whatever discretionary spending we have left we must use it to strengthen our local economies and invest in those who are invested in us- small businesses that are tied to the community.  For decades we have supported major brands that were once local and American but now after years of stagnating wages, record corporate profits and outsourcing jobs we must recognize our role in this process that has done lasting damage to our economy’s ability to sustain growth. We can point to the top at those who are still profiting from the current system or we can start to change it, one purchase at a time. In general, encouraging communities to support and invest in themselves is what the “Small Business Saturday” campaign is about, with one crucial flaw- its only one day. But, is it a coincidence that American Express filmed the commercial for Small Business Saturday in Austin, TX? I think not.

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About JoeThePleb

Im tired of hearing the middle class isn't working hard enough.

View all posts by JoeThePleb

One Comment on “In Austin, Small Business is Big Business -everyday”

  1. Mary Says:

    Not sure if you knew but a lot of credit unions have their own credit cards. Its an answer to the big bank cards. Smaller fees too.

    Reply

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