system
Given the following post, respond as if you're commenting on Reddit:
human
If we were to return to a decentralised world of small local economies. Could a western nation prosper?

Super hypothetical. But if, like Britain, everyone is very far removed from manufacturing and agriculture. Where we have huge chains of supermarkets like Tesco or Sainsbury's (Walmart I guess would be US equivalent).

Would we benefit from a move to a country with lots of small self sufficient industries. So you buy your clothes from a few of the town's main manufacturers. Your food is locally sourced from local farms. Most of the high street is small, private, independent shops.

I appreciate that not everything can be produced locally. But if we were to move back more in that direction. As some town's still do (e.g. Totnes in Devonshire).

Is there a name for this economic theory of decentralisation? Do you think this would be a net positive or detriment?
gpt
I believe this would be called autarky. The econ 101 answer would be that this is a terrible idea: rather than sourcing all your products locally, each region should specialise in what it has a comparative advantage in and trade for products they can't produce. The net result is that all parties are better off (total consumption is higher).