21 Jun 07
1 edit
http://money.cnn.com/2007/06/20/news/funny/berkshare.reut/index.htm?section=money_latest
This article is about a Massachusetts town that has issued its own, local currency. It's exchangeable with US currency at a 1:1 rate, but the idea behind it is to keep the money circulating with local businesses who accept the notes. Most of the time, buying from national chain stores sees money leaving the community. But using the local currency keeps the exchanges within the community and encourages people to shop at local stores.
U.S. law prevents states from issuing their own currency but allows private groups to print paper scrip, though not coins. So its all perfectly legal. In fact, there are a number of communities who are following this trend. Ithaca, New York, was one of the first to issue its own local currency, in 1999. Now there are communities in California, Kansas, Michigan, New York, Oregon, Pennsylvania, Vermont and Wisconsin who have done similar things.
I think this is a fascinating trend, second only to vertical farming in its potential impact on society. It seems an excellent means for decentralizing the economy and encouraging people to 'buy locally.' This may be the way to defeat the Walmarts of the world.
More on local currencies at:
http://en.wikipedia.org/wiki/Local_currency
21 Jun 07
Originally posted by rwingettI think that unlike vertical farming, this may have many unpleasant side effects.
http://money.cnn.com/2007/06/20/news/funny/berkshare.reut/index.htm?section=money_latest
This article is about a Massachusetts town that has issued its own, local currency. It's exchangeable with US currency at a 1:1 rate, but the idea behind it is to keep the money circulating with local businesses who accept the notes. Most of the time, buying from nat ...[text shortened]... of the world.
More on local currencies at:
http://en.wikipedia.org/wiki/Local_currency
There are huge problems with large multinational companies and it is one of the biggest problems the US must face if it is to become a true democracy.
International trade is a great thing in many ways and a large market tends to move forward and evolve more quickly than a small ones.
Restrictrictions on trade and the flow of money are nearly always bad for the economy. It is one of the main reasons socialist governments fail.
21 Jun 07
Originally posted by rwingettWhat stops Walmart from accepting the local currency and simply exchanging it?
This may be the way to defeat the Walmarts of the world.
Surely it is better to simply put a tax on all large chains who take money out of the area?
It seems like local communities trying to bypass laws that have been set to avoid what they are attempting to do.
Its like a country telling another country: "you can trade with us, its free trade we will not charge customs on our goods, but you must buy our goods with our local currency and there is a 20% surcharge on exchanging our currency."
21 Jun 07
Originally posted by rwingettI can understand the benefit to the business community, but whats the benefit to the consumer if the ratio is 1:1 ?
http://money.cnn.com/2007/06/20/news/funny/berkshare.reut/index.htm?section=money_latest
This article is about a Massachusetts town that has issued its own, local currency. It's exchangeable with US currency at a 1:1 rate, but the idea behind it is to keep the money circulating with local businesses who accept the notes. Most of the time, buying from nat ...[text shortened]... of the world.
More on local currencies at:
http://en.wikipedia.org/wiki/Local_currency
21 Jun 07
Originally posted by rwingettOr... the local businesses could actually try to offer a product that the public wants or give them services that people will pay for.
http://money.cnn.com/2007/06/20/news/funny/berkshare.reut/index.htm?section=money_latest
This article is about a Massachusetts town that has issued its own, local currency. It's exchangeable with US currency at a 1:1 rate, but the idea behind it is to keep the money circulating with local businesses who accept the notes. Most of the time, buying from nat ...[text shortened]... of the world.
More on local currencies at:
http://en.wikipedia.org/wiki/Local_currency
21 Jun 07
Originally posted by rwingettWhat a great scam. So, who prints the money and hands it out? Do you exchange your US dollars for local dollars? Great Scam! Where's my local currency printer. How about counterfiting?
http://money.cnn.com/2007/06/20/news/funny/berkshare.reut/index.htm?section=money_latest
This article is about a Massachusetts town that has issued its own, local currency. It's exchangeable with US currency at a 1:1 rate, but the idea behind it is to keep the money circulating with local businesses who accept the notes. Most of the time, buying from nat ...[text shortened]... of the world.
More on local currencies at:
http://en.wikipedia.org/wiki/Local_currency
22 Jun 07
Originally posted by smw6869From their website ( http://www.berkshares.org/index.htm ):
I've read the article and had some questions about it. Guess you don't have the answers. You have a very nasty,nasty mouth,Sir.
What are BerkShares?
BerkShares are a local currency designed for use in the Southern Berkshire region of Massachusetts with issue by BerkShares, Inc., a non-profit organization working in collaboration with the Southern Berkshire Chamber of Commerce, participating local banks, local businesses, and local non-profit organizations.
The purpose of a local currency is to function on a local scale the same way that national currencies have functioned on a national scale—building the local economy by maximizing circulation of trade within a defined region. Widely used in the early 1900s, local currencies are again being recognized as a tool for sustainable economic development. The currency distinguishes the local businesses that accept the currency from those that do not, building stronger relationships and a greater affinity between the business community and the citizens of a particular place.
The people who choose to use the currency make a conscious commitment to buy local first. They are taking personal responsibility for the health and well-being of their community by laying the foundation of a truly vibrant, thriving local economy.
BerkShares will not, and are not intended to, replace federal currency. Their use will help strengthen the regional economy, favoring locally owned enterprises, local manufacturing, and local jobs, and reducing the region's dependence on an unpredictable global economy.
How are BerkShares placed in circulation?
BerkShares are placed in circulation when citizens exchange federal dollars for BerkShares at any of the BerkShares Exchange Banks (see list below). Some restrictions may apply.
Citizens may exchange federal dollars for BerkShares at any of the BerkShare Exchange Banks during normal bank hours (some restrictions may apply):
22 Jun 07
Originally posted by smw6869Traverse City, MI, is one of the more than 60 communities in the US and Canada issuing their own local currency. In this case they are known as "Bay Bucks." From their website ( http://www.baybucks.org/ ), they address the issue of counterfeiting:
What a great scam. So, who prints the money and hands it out? Do you exchange your US dollars for local dollars? Great Scam! Where's my local currency printer. How about counterfiting?
What about counterfeiting?
There are a number of security features built in to
Bay Bucks. For example, a foil stamp attached to the
bill cannot be photocopied. The paper is made from a
recyclable plastic, and is tear resistant and grainless. The
serial numbers are embossed into the paper, leaving a
tactile impression.
22 Jun 07
Originally posted by lepomishttp://www.baybucks.org/join/
If these people willingly trade their fed money for local money... why wouldnt they just patronize the local shops willingly using fed money? I must be missing something... I'll read it again.
Sure, you can support local businesses with US dollars. So why become a member of a local currency campaign? Here are three good reasons:
1. The Multiplier Effect - When you spend your hard earned money at the grocery store, the store owner may use that money to pay employees or repair the roof. The employee (or roofer) will then likely spend part of their pay on books, gas, rent, etc. Economists refer to the exchange and circulation of money in the economy as the "multiplier effect." This means that your paycheck becomes income for many other people, IF IT DOESN'T LEAVE the area economy first.
US Dollars can go to support a local business, but who's to say that it will stay in the local economy at the next transaction, or the transaction after that? Few federal dollars remain in the community for more than a transaction or two. Bay Bucks, however, are locked into the local economy in a way that makes every transaction a local transaction. Because of this multiplier, a BB5 actually can do ten, twenty or fifty dollars worth of business throughout a year.
2. Local Sells - More than ever, consumers are focused on local value. Folks love to eat at restaurants where they know the owner and the chef; they love to shop at farm markets and talk about how their food was grown; they love to know the artists and craftsmen whose objects fill their home.
Bay Bucks work because of Northwest Lower Michigan - because of our galleries, our restaurants, farmers, artists and entrepreneurs. Bay Bucks work because of our unique natural and cultural resources. We're proud to be local, and proud to be connected - to our land, our food, our businesses and each other. Businesses connect to this local pride by joining Bay Bucks.
3. Bay Bucks work for the WHOLE local economy. Local Currencies encourage people to become earners, and support alternative economies that often go unrecognized. Bay Bucks can be used to pay volunteers who do park clean up, who then spend that money to buy lunch after a hard morning's work. Folks use Bay Bucks to pay neighbors - to rake a yard, knit a sweater, to babysit, design a business card - and these hundreds of small transactions add up to extra money for the holidays or for a luxury item - a piece of art or a night on the town.