Sojourn Magazine, Autumn 1998 
 

Understanding Advantages of a Complementary Local Currency Exchange by Jerri-Jo Idarius 
A currency transaction is an energy exchange, one that has become highly unconscious in our current society. When we buy products produced for the mass market, we generally don't know what we are really buying, by whom it was produced, or in what corporate coffers our dollars will end up. As a counterbalance, hundreds of local currencies are cropping up in the United States and around the world. This is a statement of a universal desire for a more self-empowered, direct and meaningful exchange, in alignment with values we want to endorse. 
     Local currency has the potential to increase employment, local production, community self-reliance, safeguards to the local environment, and much more. The chart below can best be understood in the context of other articles in this issue.
  
National Currency  

Based on debt with interest

Local Currency  

Based on free exchange

Drains communities of capital Creates local capital
Competitively driven Cooperatively driven
Generated by outside institutions Generated inside community
Profit motive promotes over-consumption Provides basic needs
Destructive to environment Safeguards environment
Disempowers the majority Empowers the individual
Dependence on outside resources Promotes self-reliant communities
Multinational corporations dominate Grassroots human resources dominate
Wealth as Gross National Product Wealth as valuable contribution (Grassroots National Product)
Sucks wealth to the top Redistributes wealth to the people
Low wages to produce low-cost products Promotes fair trade and living wage
Long distance production Local production
Hype in advertising Truth in local advertising--your reputation precedes you
Isolating to individuals Community-building
Non-negotiable value to the dollar Negotiable value to the exchange rate (dollars to hours)
Underemployment is typical Higher employment potential
Poverty increases during national depression Alleviates poverty during national depression
Fractional-reserve banking (small base of reserves) Mutual credit system--people's bank
Promotes greed, self-interest and unethical practices Promotes cooperative sharing and trust
Unmotivated wage-slaves Motivated self-managers
Borrowing with interest hikes prices Borrowing at no interest stabilizes prices
Volatile economy Steady-state economy
Volunteerism becomes less viable Supports 3rd-sector economy and non-profit services
Capitalization of local businesses is corporate-controlled Capitalization of local business under local control
Scarcity of local funding Community projects and creative employment opportunities
Displacement of small businesses Growth of small businesses
Corrupt power base distant from local scrutiny  Individual is subject to local scrutiny
National governments give power to giant private controls Local government responds to grassroots organizations
Public health, education and welfare are under tight control Private choice in health, education and welfare
Investment for profit as the bottom line Ethical investment as the bottom line
Money creates false security Spiritual resources and caring relationships are valued
Waste products seen as cash-costly and are dumped Waste products are recycled to maintain local ecology
 
By accepting a percentage of payment for goods and services in community dollars, you can help rebalance the flow of energy in and out of your community. Since basic shelter, warmth, food, health, transportation, and education are primary needs, the cooperation of landlords, utility companies, food, education and health providers, builders, repair people, accountants, and gardeners will help this system flourish. The broader our participation base, the greater the potential to infuse our local economy with vital and meaningful revenue trading dollars.

 Bone Woman ~ Weaving Worlds Together
Creating Tribal Crossroads ~ From the Publishers ~ Making Democracy Work
National vs Local Currency ~ Reweaving the Web of Life
Spiritual Community on the Internet

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