Funny Money This from the net. >Yes, It's legal for a community to print their own money. >Over 30 places have done it in the U.S. >See this URL for details: >http://www.transaction.net/money/lets/ Someone: I'm not sure where this "answer" comes from, but I like it... Local currency is a way for local economies to help keep money earned and spent in the local area in the local area. Ithaca is a great example. Many smaller communities are doing it and I love the idea. Strength in local communities in all areas (economy, social, political, networks) is important. "Money has mobility. It knows no geographic loyalty and thus has a centrifugal force on family, neighborhood, community, and increasingly, our entire national identity." -Edhar Cahn from "Money That Builds Connections" as printed in YES! magazine Spring 1997 "Paul Glover organized Ithaca Hours to keep local money circulating locally, to encourage local farmers and businesses and to provide an income for these people. And it seems to be working. Hours are accepted in 300 local businesses and have the enthusiastic backing of the chamber of commerce and the mayor, who accepts them for meals in his town center restaurant. One local bank Pays staff partly in Hours, and you can pay your bank charges with them, too. 'We wouldn't eat out if it weren't for Ithaca Hours,' said the divorced mother of two. 'It feels terribly good. You see the money's value coming around again and again.' Glover calls this the 'community magic act': they print their own currency and somehow it makes everybody better off...." -David Boyle as printed in same reference as above. The Spring 1997 issue of _YES! A Journal of Positive Futures_ was entitled "Money: Print Your Own." Hi, Some people in Madison, over in the Williamson (Willy) St. area decided that the problem is that there is not enough money in the area for the people there to buy all that they want. So they started printing their own local "money". The idea is that the stores there will pay the workers with it, and will accept it in exchange for good and meals, etc. They are called Madison Hours and you can find a reference to them in that LETS (Local Exchange Trading Systems) web page under "Project LETS list" and "USA". I hear that this idea is happening in many places. Money issued in exchange for work or goods, and backed by the full faith and credit of ... well of some ageing 60's hippies. I mean, who could ask for anything more? Now this local money idea looks to me a bit like the "company script" issued in the last century. Remember that? Instead of paying their workers in US currency, some companies paid in script that could be exchanged for goods at the company store. But I don't mean to be overly negative. I see a bright side to this movement. It is really just a way to avoid taxes and minimum wage laws, and avoiding both of these are worthy goals. I mean if a store or restaurant wants to hire a worker or waiter, but does not take in enough money to pay minimum wage, and the applicant is willing to accept payment in little pieces of paper with a picture of a duck, hey why not? And nobody has to pay taxes when they get or spend them. ,,,,,,, _______________ooo___(_O O_)___ooo_______________ (_) jim blair (jeblair@facstaff.wisc.edu) Madison Wisconsin USA. This message was brought to you using biodegradable binary bits, and 100% recycled bandwidth. REPLIES: Date: Tue, 16 Dec 1997 02:57:20 -0600 From: Kevin Bertsch To: jim blair Subject: Re: On Seignorage Hi Jim, I enjoy many of your posts. Are you aware that there are many 'barter' clubs set up in Canada to avoid the combined (in Ontario) 15% tax bite (higher in most other provinces)? They use systems such as your LETS to allow the easy exchange of house cleaning services for, say, income tax return preparation. Of course, this is giving Revenue Canada fits, and they are trying to find ways to either tax or close down the clubs. Regards, Kevin AND: Subject: Re: LETS Print Funny Money! Date: Mon, 15 Dec 1997 11:17:28 -0500 From: Enrique Diaz-Alvarez Organization: Cornell University Newsgroups: alt.politics.economics, sci.econ, alt.politics jim blair wrote: > I hear that this idea is happening in many places. > Money issued in exchange for work or goods, and backed by the > full faith and credit of ... well of some ageing 60's > hippies. I mean, who could ask for anything more? > Yeah, and with the Ithaca hours you can buy necessities such as Tarot sessions, acupuncture massages, overpriced organic food and incense sticks. As long as you pay 80-90% of the cost in evil greenbacks, of course. The only thing you can't buy with them are luxuries such as gasoline, utility bills, rent, etc. > Now this local money idea looks to me a bit like the "company > script" issued in the last century. Remember that? Instead of paying > their workers in US currency, some companies paid in script that > could be exchanged for goods at the company store. > They look to me more like glorified discount coupons for high-margin, non-essential items. > But I don't mean to be overly negative. I see a bright side to this > movement. It is really just a way to avoid taxes and minimum wage > laws, and avoiding both of these are worthy goals. I mean if a store or > restaurant wants to hire a worker or waiter, but does not take in enough > money to pay minimum wage, and the applicant is willing to accept > payment in little pieces of paper with a picture of a duck, hey why not? > And nobody has to pay taxes when they get or spend them. Actually, the Ithaca Hours newsletter reminds hours users that the scheme is legal only as long as taxes are paid on each and every Ithaca Hour earned, at a cash equivalent of $10/hour. No data on compliance is provided, heheh. > -- >Enrique Diaz-Alvarez Office # (607) 255 5034 >Electrical Engineering Home # (607) 758 8962 >112 Phillips Hall Fax # (607) 255 4565 >Cornell University mailto:enrique@ee.cornell.edu >Ithaca, NY 14853 http://peta.ee.cornell.edu/~enrique