rumpletoe ([info]rumpletoe) wrote,
@ 2007-05-03 15:40:00
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Entry tags:economy money idea

Idea: Microcurrencies
This just came to mind, thinking about crazy ideas... How about starting a neighborhood microcurrency?  You could make it as high tech or as low tech as you want, but it doesn't change the theory. 

Low tech:
Print up a bunch of bills (Or some other token)  and hand an equal number to each member.  When somebody needs help, or use of a tool, or a gallon of gas, or anything, they post it on a central bulletin board with the service/good and how much they're willing to pay somebody for it.  If a person ends up with a glut of bills, they can take it a little easier, if somebody's out of bills, they'd better pull their weight, or just drop out of the economy entirely.  It makes it easier to help out members in need, also.  People can choose to give bills to anybody that they want to.  Then, you can help to provide something for which you wouldn't have the skills or materials otherwise.  Of course, bartering isn't off limits, but in small communities, you can't always barter for what you need at the time. 

Issues:

Trust - All of the members must trust each other.  The members should, if unanimous, be able to vote someone out of the economy.  At that point, no transactions can or will be performed with the offender either for a predetermined length of time, or permanently.  It isn't like Amish shunning, barter should still be possible, just not currency transactions.

Counterfeiting - This ties into trust, but detecting counterfeiting could be difficult.  In a small enough community, it should become obvious that a person never does anything, but still has bills.  By the time the community gets large enough, there really should be some sort of government in place to handle tracking bills by serial number or somesuch. Come to think of it, using serial numbers and sending a note to all members letting them know the range would work.  If the fake bill is outside the range, it's obvious.  If it's printed inside the range, you could only put so many into the economy before duplicates started popping up.

New members - if a new member joins, then a number of bills should be printed equal to the number distributed at the start and given to the new member.  Of course an updated SN range should be sent to all members.

High Tech: 

Easy, store each balance in a database, and tie it into a computer bulletin board.  Same rules apply.

I have no idea if this would really work.  I'm not even sure how you could run an experiment, as the economy probably needs to reach a certain size before it really operates well.

Just another crazy thought.  Feedback is welcomed.




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[info]fallingintosin
2007-05-04 08:53 am UTC (link)
What a good idea...but I don't think that a person should drop out of the system completely if they run out of bills, maybe their just having a rougher time then the rest of the group for some reason...

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[info]rumpletoe
2007-05-04 01:35 pm UTC (link)
Well, if it's a legitimate hard time, then either people need to pool their resources to help him out, or print more money. I would shy away from printing more money unless absolutely necessary, because it increases the slack people have to suck resources out of the economy.

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[info]sylvester_fox
2007-05-04 11:33 am UTC (link)
I know people who use clothes button in much the same way as part of a babysitting system.

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[info]rumpletoe
2007-05-04 02:28 pm UTC (link)
I'm curious. Do they just trust each other that the buttons are valid, or do they just add more buttons as needed? How many participate? Do you know if they had any problems or disputes over the system?

Thanks!

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[info]sylvester_fox
2007-05-04 02:44 pm UTC (link)
It was based on trust and open to abuse, but it worked overall.

At the start of the year you got given so many buttons and each time you sat for someone they would give you a button. When they ran out of buttons they couldn't go out until they had sat for someone else. Also, you weren't allowed to collect too many buttons. After a certain limit you either had to stop sitting or were obliged to go out somewhere for an evening!

Since, the idea was set up between friends it worked on the whole. It acted as a good record keeping system so that people didn't feel put upon to keep sitting for friends. In this system you couldn't sit if you had too many buttons and your friends couldn't go out if they had too few.

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[info]cycleboy_wwo
2007-05-04 04:02 pm UTC (link)
it seems like some kind of semi-regular governing body needs to be in place before this works?

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(Anonymous)
2007-05-04 08:29 pm UTC (link)
It's basically a community currency system; lots of them exist. I have been trying to get one going but backed off for a bit as it takes a bit of work to really do well. I figured that if things got bad enough people would finally be willing to work on it! Some, like Ithaca Hours, have been around for awhile now. I think it would be great-when you spend more than you can afford on gas and oil- doing something or providing something to your neighbors can bring you alternative cash- which you can then use for something you need...

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[info]orangeforahead
2007-05-05 07:59 pm UTC (link)
Interesting! This would be a good system to run if the economy broke and we had to become community self-sufficient. The thing is, why would money cease to work in a town? And if you mean smaller than a town, a neighborhood, then what goods or services would this be used for?
Since this would be good for jump-starting a really broken economy, perhaps the best way to get people "in-practice" is to make it a sort of game. Idunno, the only good or service I can think of is carpooling, and if you can't manage paying back for that with money or polite favors, then maybe a community carpool system would be better, where your economy is a point system?

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