A quick glance at the U.S. Chamber of Commerce website confirms this assertion. While the overall picture of the state’s recovery remains positive overall, it does take note that shipments have slowed as more foreign oil refineries exit the country while more domestic production rises. Is this a trend that holds true for New Hampshire? What you can surmise is that as shipping rates from foreign countries drops, goods prices will go up and so will the taxes that support local businesses. When coupled with lower land and income taxes, New Hampshire’s government will be forced to look at ways to raise funding or cut costs.
So is buying local goods the solution to the economy recovery? Well, there are certainly things that the New Hampshire government can do to increase their ability to collect taxes from businesses. For instance, they can increase the tax rate on sales of goods and services by 10%. This would certainly drive more goods and services into the local economy, thus supporting it.
But is this the only thing that the New Hampshire government can do to kick start the economy? Unfortunately not. As mentioned above, there are many other factors that come into play when discussing solutions to improving New Hampshire’s economic health. In addition to raising taxes on importers and exporters, New Hampshire can also implement a number of different business regulations which will limit local companies in several different industries. Not only will these measures cost the state revenue, but the harm that the regulations will inflict on smaller businesses and families will be felt in the form of job losses and lower income families.
So is buying local goods the answer to the economic recovery? Only time will tell. Until then, take a step back, look at the larger picture, and consider whether your local economy needs an injection of capital, regulation or both.
The economic recovery of New Hampshire will depend upon whether the state government is willing to address the issues that are causing it trouble right now. Will they look at the impact of global shipping on New Hampshire’s ability to keep its smaller towns viable? Will they look at the impact of over-regulation on local businesses? Only time will tell.