Re: Alternative exchange systems furthering GPL society? (was: Re: [ox-en] New economic model for free technology?)
- From: ernie yacub <yacinfo mars.ark.com>
- Date: Wed, 26 Oct 2005 12:31:24 -0700
Michel and others who think LETS and other such mutual credit systems are
merely useful in person-to-person trade and are therefore limited...
There is no reason that community currencies (cc) can't be used to buy food
from the grocer, gas from the station, hardware from the store and software
from developers. That's just a matter of those businesses accepting cc in
part payment of a sale - the value added part.
And why wouldn't they if their normal money costs are covered (80-90% for a
grocer; 90-95% for gas station; 60-70% for a hardware merchant; 0-50% for a
software developer, etc).
Especially if it meant that they could spend the cc with other businesses, pay
staff bonuses, hire contractors, buy food for the family. The upshot is that
cc favours local businesses tilting the economic playing field and generating
more local production.
More money circulating in the community means more business for everybody.
Every cc spent is a normal dollar saved for those things that cc can't buy or
payment of taxes, although in due course local fees and taxes will also be
paid in cc. Consider the possibility that a local government decides to
accept cc in payment of business fees and taxes. That would mean that
businesses could accept an even higher cc percentage of a sale.
There is no reason whatsoever that cc can't become a significant factor in any
economy. Once they're circulating and creating more business and trade,
common wealth is created rather than exploited.
Just because cc are in their infancy and haven't yet been proven to persist at
the community level doesn't mean they can't or they won't. "Commercial
Barter" systems use internal currencies to trade billions every year.
Argentinians used creditos to weather their economic meltdown and some
credito systems persist even though normal money has returned. Many
communities survived the great depression using their own currencies.
The potential is certainly there - all that's needed is liftoff. In the early
days of flight, most people couldn't envision flying in a metal tube
thousands of feet in the air, much less rockets to the moon (and back).
In one of your earlier posts you asked for some reading material so here are
some websites to explore...
argentina...
http://www.guardian.co.uk/Archive/Article/0,4273,4243942,00.html
...current system design
http://dev.openmoney.org/tiki-index.php
....money and community
http://www.openmoney.org/play/m&c-notes.html
....the money problem
http://www.gmlets.u-net.com/explore/problems.html
...Tom Greco's books and materials
www.reinventingmoney.com
...Strohalm foundation
http://www.appropriate-economics.org/
ernie
http://lets.net
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