The same inefficient food supply model proposed in this Grist article by Tom Philpott could very easily be extended towards the entire marketplace of goods and services. Just as it makes more sense for quality food to be produced this way, it makes sense for large swaths of consumer needs to be produced in the same way. Etsy is doing well, indicating there’s a growing market for the handmade.
If we look at current conditions wherein people are buying less of everything, yet still need certain things, exploiting the flaws of the efficient marketplace with “inefficient” products should lead to increased regional prosperity. A good portion of consumer needs can be met in the so-called craft marketplace, by local tailors, cobblers, woodworkers, and, to repair the factory produced appliances, a sizable force of repair people. Needless to say, this inefficiency also has positive environmental outcomes as well, with less packaging, less shipping, and fewer large trucks on city streets.
There’s definitely holes to be filled in to make the plot work. Many of the skills needed to build a local economy have evaporated over the last 50 years. Our infrastructure isn’t particularly friendly to local living once you get out into the suburbs. People have to buy into the concept of well-made, slightly imperfect goods made inefficiently, rather than poorly made, perfect appearing goods made efficiently. However, we’ve also got an army of marketers and advertising agencies who are going to need something to do now that simply telling people to buy more stuff isn’t working.