Buying Local Assists Economy, Friends, and Local Tax Base

During the first week of September, the nation pauses to celebrate Labor Day. The holiday was created in the 1880s and by 1894, Congress passed an act naming the first Monday in September officially as Labor Day. The holiday grew in popularity as labor organizations grew across the country. Labor Day was created to encourage families to stop working for the day and to have fun. As such, parades and picnics are traditionally part of the weekend’s activities for many.

New York was a leader in the movement. In fact, a parade which took place in New York City on Sept. 5, 1882, is often credited as the first unofficial Labor Day event. Workers from local unions gathered to rally workers and draw attention to labor issues of the day. According to the U.S. Department of Labor, there were as many as 10,000 to 20,000 marchers who participated and gathered in Reservoir Park. Through the years, Labor Day continued to be celebrated and images such as the Rosie the Riveter illustrated how women too were working in previously male-dominated manufacturing jobs, to help the U.S. fight the war while men fought overseas.

In this country, we have a long history of strong work ethics and ingenuity. The early industries, such as paper mills, flour mills, sawmills, and textile manufacturers, shaped our region. Today, our current job creators can be found in food, machinery, energy, agriculture, health, and service industries. We continue to be innovative and industrious about reaching markets locally and internationally. In fact, according to a recent report published by the U.S. Bureau of Labor Statistics, the average weekly wage in 2013 for Oswego and Onondaga counties is higher than the national average weekly wage. Oswego County averaged a weekly wage of $742 and Onondaga County averaged $858. Jefferson County came in at $647. The national average weekly wage was $673.

One thing still holds true as it did in our early beginnings: buying local matters. It is estimated that for every $1 spent locally, up to 45 cents is reinvested in our communities. It is closer to 15 cents for every $1 when spent outside of the region. Studies also indicate that if Americans shifted just 10 percent of their purchases to support the local economy, it would infuse millions of additional dollars per year into the community’s economy.

The dollars spent locally help our neighbors and friends stay in business. It also keeps tax dollars local. It is estimated that local sales tax comprises 45 percent of a county’s total budget. These dollars help maintain local roads, health care, pensions, and prisons. In 2013, according to the State Department of Tax and Finance, Jefferson County collected $73 million in sales tax, Onondaga County took in $322 million, and Oswego County collected $42 million. These collections help offset property taxes as well.

Late summer goes hand and hand with back-to-school shopping. This is another way we can support our local economy. It’s estimated that nationwide, there are 78 million students from nursery school to college who will need to purchase goods — from clothing to books — in preparation for school. That’s about 26 percent of the population, according to the U.S. Census Bureau. Clothing items under $110 are also exempt from New York state sales tax (4 percent) this year again.

William (Will) A. Barclay is the Republican representative of the 120th New York Assembly District, which encompasses most of Oswego County, including the cities of Oswego and Fulton, as well as the town of Lysander in Onondaga County and town of Ellisburg in Jefferson County. Contact him at barclaw@assembly.state.ny.us, or (315) 598-5185.