Two neighborhoods in Milwaukee are considering printing their own currency, which could be bought with U.S. dollars, but would be only accepted at local businesses, in order to encourage people to shop at home instead of Walmart.
It’s not a new concept — the Chicago Tribune says that lots of towns and neighborhoods relied on their own local currency during the Great Depression. It’s also perfectly legal.
So what’s the advantage for shoppers? Well, the currency could offer incentives — trading $100 US for $110 in the local currency would give shoppers a 10% bonus, for example.
What do you think? Would you use a local currency in order to support your community? Or are you going to shop at Walmart until they pry the cart from your cold dead hands?
Milwaukee Neighborhoods Could Print Own Money [Chicago Tribune]
(Photo: sfxeric )
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The traitors in govt are free to debase the currency, and the little guy always gets his pocket picked. The flaws in this plan are familiar to those who’ve tried a barter system. The local businessman (at least those who passed SBA 101) doesn’t want to be the bagholder of a lot of illiquid “currency” that they can’t use to pay suppliers. Worse, thanks to the armed thug parasites at the IRS, they’re expected to cough up real cash for onerous taxes related to the transactions. Special sales offers will dry up because nobody can justify lowering prices for services and products and in fact, they often have to raise prices to off-set the hit making them even less competitive. Purveyors of big ticket items either cap the amount of fake tender they accept or they can find themselves in cash flow trouble real fast. It’s a nice idea, but the devil’s in the details.
Wouldn’t it be much easier for these neighborhoods to just offer discounts to shoppers who live in the neighborhoods that they shop in, cut out the whole currency exchange deal and make life much simpler??
We’ve had an alternate currency since ancient times — one that’s always been used in times of financial instability. It’s called gold. Look into it. Until FDR, our currency was based on it.
Anyone who understands the history and nature of money will understand that this is a good idea.
See http://www.amazon.com/What-Has-Government-Done-Money/dp/0945466102/ref=sr_1_2?ie=UTF8&s=books&qid=1228449483&sr=1-2
OutBack offers $120.00 in gift certificates for $100.00. Gift cards and gift certificates are currency that many already put into circulation.
I live in a very small community and if the locals could use local money and still collect money from the visitors in a resort town I think that it caters to both and feel that it allows all to survive together.
hey y’all, my community in Montana already has this, we call them chamber bucks sold by our local chamber of commerce. businesses all over town except them and alot of times radio or businesses use them for prizes or drawing to encourage local shopping. lots of residents use them too. they make great gifts for friends family or kids. i’d rather know that my kid is using his 100 dollar christmas gift on local store items and not getting into trouble with it!
How can you create money that’s not backed by hard assets? Or is this more of the same crap we’ve had for years now nationally? There’s already a lack of hard assets to back the paper so I’ve been told by different people.
I am goin to use a “saying” that we used in the Marine Corps when someone did something wrong but at least tried to do it;
“Good initiative, bad judgement”
Although i applaud there efforts to bolster there local economy, this accomplishes nothing. Might as well start a commune. Futhermore, if the residents aren’t already shopping in local stores, what makes you think that they’ll buy money for those same local stores? These people must have been those kids sticking a triangle into a round whole. Lastly, it all comes down the the bottom dollar for everyone. Plain and simple so if Home Depot has a hammer for $5.00, and Jack’s Hardware has one for $9.00, you can hit the road Jack!
This is such a post depression idea that actually worked. The cities will probably in turn offer incentives to the businesses that accept the new currency, and it is a good way to keep money in the local region.
While this is not a true fix this is probably the best stimulus package idea I have ever heard of happening in this crisis.
I think a better way of doing it is just offer all the residents a hometown discount card. There are many cities that are geared toward retirees that do a similar thing that allows you to show a residence card and get special offers and a regular discounts. It would be a lot easier and legal.
Sounds like a hassle for both the retailers and the consumers. It’s just one more step in the buying process. It just doesn’t seem worth it, or make sense.
They just wanted to have cool looking coins with their city on them. Who’s face will be on it? The mayor’s? Who pays to make the coins?
How can I become a vendor that can exchange fake dollars?!?!?! I would gladly give fake dollars out for some of the real stuff. Ooooh! I could also charge a fee to all the boneheads wanting to exchange their hard earned US currency.
I think it is an excellent idea! Ask yourself, do the American people REALLY have control over there government? No. Why is that? Because politicians have gotten so rich off the stock market that only the worst, most ambitious ones can even come close to being elected. “So what does this have to do with the price of tea in China,” you might be asking… Well, it has everything to do with a local currency. Everyone wants MONEY. When someone HAS money, then they want POWER. Face it, Power is MONEY. But what about the little people; the little-American person, and what do we really have; Money, Power? No. We give it all to Wal-Mart. Why? Coupons and convenience, it literally has EVERYTHING we need to survive. Everything…and as the little-American shops and stores close down, forever, because places like Wal-Mart (or any other LARGE multi-national “convenience” corporations) DESTROY THEM, and we are then at their mercy. Furthermore, we are at anyone else’s mercy, too. In the end, family towns and WHOLE COMMUNITIES have been destroyed. What are left in the end are just drugs and crime, murder and rape. Why? Because WE little-American people gave all of OUR hard-earned MONEY to people in OUR COMMUNITY, who instead of spending that money within his or her community, they spent it on places like Wal-Mart…and made MILLIONS. More money, more POWER. Politics is the next stop to power. Here’s the real hind-end kick, every politician has to start somewhere. Have you THOROUGHLY checked to see how your community’s education system is doing? How well it’s funded? So, again, “what does all this have to do with the price of tea in China?†We, the little-American, give all of our money to Walt-Mart and have lost, the true, American Way: self-sufficient family communities. But how did this happen? No community support. The little-American gives all their money to businesses in the community. Many of these businesses, not all, have owners who, instead of spending their money on community businesses and goods, shipped all their supplies from wholesale distributers to sell inside the community…and they got RICH. Rich is money, money wants power, power comes from politics. Now, money also covets money. Those NOW RICH business owners decide to join politics, starting in their communities. They get elected, buy land, place people in certain positions, and then the re-zoning begins. MILLIONS ARE MADE. Perhaps TENS or HUNDREDS of millions are made. Then, Wal-Mart comes in, and family businesses DIE. You know what a recession is? Recession happens when places like Wal-Mart have sucked out every dollar from every little-American…and then beyond…through credit: nothing left. This all happens because the people in communities supported those business owners, within their community, with MONEY, who then used that money to get richer by importing their goods, instead of supporting their community’s economy. Then, they use that wealth to get elected, position people in the right place, and then comes Wal-Mart, family businesses die, real estate prices go up, massive corporations move in and send their money overseas, families sell and move out, education takes a back seat, land gets cheap, crime moves in, more Wal-Marts go up, morals decline, and the family communities die. Do you want to know where the money in a community goes? OUT. Now, think about all of that on a national, global scale, and then think about what a local money-market with its own currency could do for a family community: a safe and educated family environment. Think about that.
I would support anything that would rid the world of the evil that is Wal-Mart. If there are three things I could eliminate in the world, it is cigarettes, sending our troops overseas for oil and Wal-Mart!
The government already has a version of this, called WIC checks, good only at participating grocery stores, and on a limited basis at some farmer’s markets. The only drawback is you can only buy healthy stuff, which annoys the junk food junkies.
I think that if local merchants offer gift certificates for their store with a value of as this exsample $25.00 value for $20.00 dollars would be a great deal for shoppers. Do you agree?
This money seems about as legal as what we havein place now.the current fiat system we use is unconstitutional. We use a fake money system now, based on nothing.The Federal Reserve is about as “federal” as Fedral Express. Printing money as they see fit. We are doomed if we think they can fix the economy. I think they have already given it a “fix”…and you or I were not in on the good end of it.
I think we will, at some point, move towards a sort of money system linked to hard commodities like gold and silver.After we see the effects of the coming hyperinflation we will need something to stabalize…thank you gold and silver.
This is a good idea and I have a good for example. In my hometown in Vermont we have a farmers market each week in the town square. In the last 5 years or so they started to make it so people on foodstamps could use them to buy locally grown fresh produce. What they did was they had a machine set up and a state or town rep and you would swipe your card for say $50. they would give you your receipt and then you would get wooden “coins” in denominations from 25 cents to $25. You then would use those to “buy” your food at the farmers’ stands and go on your way. When it was all done the farmers would turn in their coins to the rep and collect the US currency. This allowed the agricultural workers in the community to market their goods to more people, especially those who probably wouldn’t buy it with money because they didn’t have it promoting consumerism in the community and support for some of the population while also allowing its citizens to eat fresh healthy foods and all the while keeping that money within the town rather than filling up the Walmart owners’ pockets. I apologize this was a long comment but I wanted to give a good example as to why this is a great idea. It allows a community to lean on itself during dire times.
This is similar to the construction of the economy under the Articles of Confederation. Each state had its own currency, which was a big problem for interstate commerce, and ultimately why this practice was abandoned. However, the practice of using local currency does present the benefit of supporting local businesses and stimulating the economy from the bottom up. We rely so much on foreign labor, foreign raw goods, and foreign buyers to stimulate the economy that it might be nice for us to try going the other way with things.
Thoughts?
I’m curious as to which “neighborhoods” are the ones looking into this. If it’s on the “fashionable and trendy” east side or the “soon to be upscale” downtown areas, this won’t work a lick. Try putting your prices back at common sense levels and maybe you’d get more people in the door. As much as I hate to say it, until money starts to grow on trees, people are going to tap Wal-marts for the lower prices on everyday stuff.
Local currency is like a token on carnival rides or arcade games.
Depression is just a virus on the consciousness of the masses who don’t realized real prosperity.
More on local currency below:
http://www.hophunt.com/search/local-currency/1-1.html
Lets not forget the time it takes to convert “funny money” back into real dollars and time is money. Also having been a Hippie I can attest that for the most part. we believed more strongly in the core values of this country than most of the so called strait society
We are not in a depression, a recesstion yes, but if we overwhelm our own minds about another depression and using local money to fight the buisnesses we helped grow, then everything will be worse than it already is.
Ithaca, NY has had its own money for years! And, it has worked out quite well. They should investigate how they did it.
So, these local neighborhoods think they can subsidize local businesses to the point that they are as cheap as WalMart’s everyday low prices? Good luck with that. Why not save themselves the expense of printing fony mony and just give real dollars to the local businesses instead? The local businesses could take the subsidy and lower their prices to compete head to head with WalMart, only more so since they actually get more of money because you don’t waste all of that printing and administration expense that is…ummmm…useless.
Of course these dollars will be coming out of the taxes the poor residents will be paying (whether straight up USD or local monopoly money). So if you really wanted to make it nice and efficient, just force the local residents to fork over hefty sums of $ to local businesses without laundering it through local government. Of course, that gets you voted out of office…hence the need for all this smoke and mirrors to fool people into thinking they are doing something different than just paying the higher prices that local businesses have to charge to stay in business.
Ah, well. Whatever….
Why do you need an incentive to help out your neighbors? I come from a small town and the local businesses all need help to stay afloat. I know that they may be more expensive for some items, but they are YOUR NEIGHBORS. C’mon people….this is sad. I would help them out.
Iowa’s newest town Vedic City has its own currency. It’s called the Raam and its pegged one to ten us dollars (full story http://www.maharishivediccity.net/attractions/currency.html). Its if the money wasn’t pegged to the dollar. This would create competition amongst currencies and discourage excessive printing and lower inflation rates.
Plus the upside is the us dollars could sit in a bank cd and draw interest lower the need for higher taxes.
We have something similar built into my student ID at the university I attend. I know several universities in Virginia and likely other states have a similar system. We can put money on a debit account and it works anywhere on campus and at local retailers who elect to accept it. It is pretty convenient, but I have not used it in several years since I figured cash is worth the same and I can use it anywhere. I would strongly consider using it again though if there was an added bonus money incentive like is proposed here.
Sounds interesting. But, how will the town banks store and distribute the real money for the fake money?
Could lead to alot of vault issues. Employees mishandlingthese 2 different currencies.
Just ponder…..what if your blind?
ok…this i dea is a no go only b/c back in the Constitution day (when it was being written) each state had its own currency and this idea didnt work thats why we went to the well know USD currency. so why go back to the times where the states were diffrent and we were confused that makes no sense we were supposed to be moving forward in time not backward
Get over it. Wal Mart is a great american company. Believe it or not, I support both the local mom and pop businesses for certain things and Wal Mart & Target for other things. That’s a free market, baby!
Well let me see here, this is just a start to an eventual one world currency.The bibical end times I say” before you know it you will not be able to buy food unless you have this currency. Dont people see it’s not about walmart or local business! The tricks and traps of the money system is global, and it has already started.
I don’t really see a big problem with doing this, but it won’t help anyone, because if it’s only local, no one else will care, but to think it will raise the value of money is ludicrous. All this does is cause inflation. If all local residents know that 110 local dollars = 100 us dollars, then they’re going to charge you 50 cents for a newspaper and 55 local cents for the same paper. It won’t make anything cheaper, nor should it.
OK, I think a lot of you are missing the big idea. I read one person’s comment using the analogy of Bob light bulb emporium. Here’s the skinny. If Bob is only selling 1 light bulb a week and makes a 2 dollar profit of each light bulb, that is sucky business. BUT if Bob partakes in the “fake money” ordeal and starts selling 20 light bulbs a weeks but only makes a 1 dollar profit on each one BOB WINS, the consumer is the one that loses. These local businesses dont care what kind of money is used because no one is looking to make a monetary profit. The ONLY idea (atleast in interpretation) is encouraging the locals to support their local economy and quit stuffing Walmart’s pockets. ITs a great idea and I would absolutely support it. I would support any bogus idea honestly because it encourages people to take matters into their own hands and not just except things for the way they are. The American WAY!!! God bless
Its a nice thought, however the price to shop at mom and pop places is 10 to 20% higher since they do not have the buying power.
How about this as an idea. Just have all local stores offer a 10% discount. No need to exchange cash and you have the same effect. The End.
Well, there is only one legal currency. It sounds like this is merely a boycot on Walmart. You don’t have to shop at Walmart if you don’t want to. Shop online and discount grocery stores and produce stands in the Summer. But know this… You cannot beat Walmart or any other retail giant. Especially knowing that they will get bailed out if they face or near disaster. The economy will not get any better by Walmart losing money. It will just put hundreds and thousands out of work which will make the economy worse and worse.
Unfortunately, giving someone $110 local currency for $100 cash still doesn’t offset the fact you can go to Walmart or any other discount chain and get the exact same product for let’s say $70. The $10 extra in local currency still won’t offset the discount of a discount store. Also, try returning a product to your local store. Restocking fee’s, in store credit instead of a refund, etc. Return it to a large discount store. No questions asked. Sad, but true.
I shop at my local stores anyway, and would a separate currency work for the vendors? I’d just as soon use real money in town instead of at walmart, so I don’t think printing a different currency would be worth it. how much would it cost to print this stuff and wouldn’t it be easily counterfeitable?
Think globaly and act (shop) locally : )
how much does it cost to whiff out funny money,each person pays real money for home made money,,,what a deal…i dont want to buy home made money but will trade your dollars for my paper…and i can shop any where…
Whoah, this was on the front page of Yahoo, congratulations Consumerist!
Who would control the autherization of the fake money? What stops people from just makeing there own fake money that looks like the fake money? Is there a fake bank that transfers fake money for real money? There are to many variables for this to happen.
Reading these other comments reminds me why capitalism is a failed system and does not work for the majority of the population. Local currency is a brilliant idea that keeps the money flowing in your local economy. But because of the nature of humans, we are all selfishly trying to maximize our resources and minimize our risks. Thus we buy cheap imported goods and most of our money flows out of our communities, and into the hands of fewer and fewer people.
Think about it, how much of the money you spend at Wal-Mart do you think stays in your town? Less then $1 out of every $100 stays in your town. But lets say you buy the same stuff at Joe Bob’s Hardware down the street. Joe Bob may have to buy much of his stock from somewhere else, but he lives in your town. His kids go to school with yours, he probably pays some of that money he made in property taxes for both his house and business in your community. Wal-Mart gets city’s to waive property taxes for up to 20 years because they promise jobs. So, who are the idiots, those who use local currency, or those who shop at Wal-Mart?
worst idea ever. it would burden the shop owners more than help out the community and stop wal-mart and another thing wal-mart isn’t bad, its actually the opposite. it make you save money in this bad economical time. Plus there are plenty of anti wal-mart people to keep the small businesses running.
There is no problem with printing currency for the local shoppers, but there would be one problem and that is that the local shops would have an increase in the price of their products compared to wal-mart or any coporation, the reason for this is that larger corporations buy a way larger amount of their products to be sold, than the family own, or local business, Which means a great big discount for the amount of times made, bought.
Even with the incentive for switching to local currency, there would still be decrease in the amount of consumables that could be bought due to the prices of the products.
These facts are stated from a past employee, and a past local business owner.
Jeez, doesn’t it take money to make their own currency(fake money)? How would they make the currency not duplicable? With the technology today even the treasury has a hard time keeping up with fake dollars. If they find fake currency(fake money), will they call the FBI to investigate or the Treasury Dept? They will get laughed at. I’m no fan of Wally world, but they do not usually have food discounted because they are the superstore to compete with. We buy for $100 a cartful at our local Stop & Shop (Stop & Rob). While 30 min away, we get almost a cart and a half for the same bucks. A 10% discount is not really great if the retailers jack up their prices because you HAVE TO SPEND IT THERE! Sounds like it only benefits the stores not the consumers.
Well this really opens the door to the counterfit and with todays tech. who would be able to keep up with the counterfit cash that would most likely be circulated into the local economy???
Why not let the system work? If someone else can offer something cheaper then buy it there. Why is wal mart the bad guy because they don’t care to use slave labor and send all the work over seas? It seems to me that this is good business? Maybe I’m wrong here, but I doubt it. This sort of “cleansing” needs to happen once in a while. It helps things in the long run. Anyway. The government helping out the big business is garbage and they need to fail just like all the small mom and pop shops. It happens.
I believe the world should simply disregard the paper, inks, and metals/metal alloys. That is all it is! The futuristic and idealistic (somewhat realistic as well) is everything is being processed, created, made, etc., with the simple exchange of the metal and paper, etc. Why not revert back to the very old days where education was free…clothes are made and are available for everyone, the same with food. If you think about it…it is realistic. Of course, the majority of the world doesn’t think this way and would go absolutley ballistic and bonkers and HOG everything!! In all reality, take one small business chain and wherever they receive their food and clothing and “all kinds of stuff” and start there. One thing at a time so there would be mass chaos. Colleges should be able to accept anyone and everyone that wants to learn. If there aren’t enough seats (just like now) wait until the following semester until the course if offered again. It truly makes sense. We need to start realizing that it’s the paper, ink, and metalmetal alloys that drives this country; but it truly does not have to!! Think about it!