A community currency for Bloomington.

[Ressa Charter]

bloomingtoncommunitycurrency.blogspot.com

Homemade currencies, sometimes known as community or complementary currencies, tend to emerge during economic crises. Small towns and cities in the U.S., Canada and Germany introduced their own scrip during the Great Depression. Similar schemes have emerged more recently in the U.S., Japan, Argentina and Britain.

While Bloomington may be temporarily insulated by IU from the worst of our current crisis, various forces may lessen that effect if predicitons of "V" or "U" shaped recoveries, turn out to look more like an "L". In the face of global energy depletion, unprecedented public and private debt burdens and the destruction of $9 trillion dollars in private wealth, it doesn't seem outside of the realm of possibility that serious hardship could be felt here. Regardless of the long term impact of turmoil for financial capitalism, Bloomington would be well served by encouraging local spending and investement through the development of a community currency.

An example of a succsesful program in the U.S., is Berkshire County, Mass. Residents there pay $10 to get 11 "BerkShares," which are widely accepted in local stores, encouraging people to shop at home instead of using dollars to buy goods online or at large retail chains. Launched in 2006, BerkShares are still being used.

The idea is that by using local currencies, residents don't spend so many dollars, pounds or euros, keeping more resources within their communities. And because local currencies can't be easily banked or invested to earn interest, users keep spending it, providing a boost to their area's economy.

A wide literature exists to help communities get started in implementing this kind of project. All it takes is committed group of people to get it off the ground, and thats what I'd like to help start. I'll try to disseminate this through various means and gauge interest. Feel free to comment with your own ideas, and lets get started on a proactive local solution to all the financial calamity in the news.

[Arik Flanders]

This seems like it could really be a great idea. However the value of the greenback can go much further then that of a local currency. It is obviously important to support local businesses as they are the backbone of the country. On the other hand during a financial crisis it seems that most consumers will try to squeeze out the most value they can get out of each dollar. Meaning by shopping at the large retailers and searching for the best online deals one does not have to sacrifice there standard of living to the extent they would if they shopped only locally. As Americans the latter part seems much more applicable to the people of this country. We want the most we can get, for the cheapest amount possible.

Thoughts?