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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This is a great idea, even if the business were to only break even they would still get an increase in business.
Town invests in program > Citizens get discounts > Businesses get increased sales > Town gets more revenue from taxes.
The benefits of small business have been long forgotten by many it seems. I personally would rather go down to the local store and say “Hey Bob this (insert random item here) you sold me seems to be defective” and then Bob gives me a new one rather than having to freaking mail some crap in to get more crap from a person I’ll never see who has absolutely no accountability to his customers.
I think that it is a great start to thinking about the American economy. But we must all work together and make a change to bring back “made in America”. Everyone loves to complain but does nothing to change. We are all suffering because of large companies finding cheaper source. It is sicking to see this. China loves to take our money and give us harmful products in return. This is a no brainer are you retarded? We need to make a change or it is only going to get worse. We are spoiled by our own ways. Don’t sing it bring it!
Great idea… use money to create jobs? Think about it: somebody is going to need to be hired to print the money, to advertise the use of it, to collect and convert it, etc. Maybe they could outsorce those jobs… or how about they just use the money that is already in place… that might save money!
So You get a $110 of city money for $100 which is a 10% discount. Sounds good except whenyou go to a local main street store it costs you $75 for a pair of sneakers as opposed to $25 at Walmart which is 67% more. So if you subtract your 10% discount from the 67% extra you paid for your product you actually paid 57% more.
I can see how it would work… and I can see how it would fail. Yes, the country’s economy is failing, but is a new currency really necessary? And wouldn’t store owners be losing money? So it doesn’t really help the economy, especially if you consider the local store owners.
it seems to me that if they marked down there prices 10% ( or 9.1%) local buisness would be more competitave with walmart in the first place without getting middle men involved, who i would bet have there hands in the pot. thats if the city counsolel isnt the the buisness owners using there position to help themselves
A far less complicated system would be credit cards that are only good in those towns, the way that gas cards or store cards are only good in those places. They could still link them to funding by a bank account, the way Paypal does). The town could give bonus points for each dollar spent in town, e.g. $1 back for every $10 spent.
Well, any idea that takes money out of Wal-Mart’s pockets is a good one. How ever I can’t see this being it….until people realize that shopping at Wal-Mart, or any primarily Chinese based retailer, is the root of our economic problems then nothing will save us. You just can’t spend all of your American earned money on Chinese products AND have the American economy support itself…just not possible. It’s such an easy concept that so few people seem to understand or act upon. Sad really….
well how is it a 10% discount becuase all ur shops in town cost more then the stuff cost in walmart so at the end u still save a walmart…this is not board game people get with the program.i mean am i right people?
Sounds like a really stupid idea…Why would a local business WANT monolpoly money printed by its’ local neighborhood or city? You buy a toaster from the local toaster store for $80 in Milwaukee Rupees, the store owner now has posession of $80 in rupees and you have posession of a new $80 toaster. Which bank exactly would you store your fake money in? Would you have to store it in a local bank? Would you have to keep it in a safe? What if the market turns good and you are sitting there with a ton of Milwaukee Rupees and no American Dollars? But the biggest negative of all is that the businesses you buy from locally dont make their own products (99% of the time), they order them from another state or country. So are they gonna buy toasters from Pennsylvania with Milwaukee Rupees? NO, its a retarded idea, one that only a “neighborhood” could think of…
The best way to protect local and small businesses is to stop voting people into office who want to impose government regulations and additional taxes to the the wealthy (small business owners) which all but kill our number one creater of jobs in this country which happens to be small, locally owned businesses. We messed that up for the next four years. Lets fix it in two years when folks who want to tax business owners and pay that tax to subsidise non producers are up for re-election. Kudos to the guys up north for finding a way around the mess created in DC by the Pelosi run congress.
Well, I think it is a fantastic idea. BUT, I would only take advantage of it – if it were fair. So long as the prices are actually comparable…if they significantly mark up the products (of the same quality)…then in the long run, it is not going to be beneficial. Unfortunately, at this time…I feel like (and it right that) everyone is only looking out for their personal bottom dollar.
I read the reason why these neighborhoods want to print their own currency, but why blame it on Walmart. They should wake up and smell the coffee. Most clothes, small appliances, home electronics, and most economy cars and made outside the US. Greed will always be in the hearts of some people, and what’s to stop the shop owners in these areas from raising their prices when the currency is printed. Now you are back to square ONE. I would never use the currency because I think it goes against the USA.
I would of voted yes on this because i’m so mad over the bailouts . But think this would weaken the dollar more and give the goverment another reason to get rid of the dollar and switch over to the mexico+american+candna thingie which im toally against.
If this is legal then why did a guy get arrested for having a currency backed by gold?
The government hates (legal) competition.
Coffeyville, Kansas already has this program in place, and has for at least 5 years. They are called Coffeyville Bucks, and can be purchased at the Chamber of Commerce. My former employer gave them as a Christmas bonus one year. Same as cash at like 30-40 local retailers.
It would be an opportunity for local business owners to expand their customer base in the long run. Consumers that normally shop Wal-Mart would be shopping elsewhere for the same items providing said business owners with the chance to earn a lifetime relationship with these consumers.
We live in the UNITED STATES not the UN-united states…this action is a very small start to breaking us all apart …I am sure the Muslims would love that so they would have a better chance of taking us out. Think big not about saving 10 cents at the store. If Walmart has earned their way to where they are and the mom and pop shops that are trying to compete …thats there fault.
There are many local currencies/LETS in the US already. The most famous & longest running is in Ithaca, NY. Time dollars and PEN exchange are also successful. The Raam in Iowa is even accepted for bank deposits in the Bank of Netherlands. The most successful are where the money can make “a full circle” and you can pay utility bills and property taxes with them.
Nothing new for me. We in Berkshire County,MA already use local currency since September 29, 2006. We call it Berkshares:) Here is the link:http://www.berkshare.org/
So, it’s been 3 years for us.
Not really a great idea. There’s a local tradition and festival in my hometown of Conway and it’s called Toad Suck Daze. It’s a huge festival and the theme of course, is toads and such but it’s held once a year and attracts a lot of people because they have nothing better to do, honestly. They started a new thing in the last couple of years that you had to pay for “Toad bucks”, one ticket equaling one dollar, and nothing in the entire area would take regular cash except for vending machines, it’s really stupid. You’d have to pay 7 dollars alone to get on a ride, and food is around 2 tickets to more, depending on what you get. There’s nothing you can get for one ticket so any left over is a complete waste and they’re worthless after the celebration is over but the force you to buy them.
I don’t recommend new currencies at all, they’re big headaches and really don’t help at all or even really need that sort of stuff to begin with. People will eventually get annoyed with the new system, like I would, and drop it altogether. It would result in the businesses that aimed for this marketing scheme to just lose customers and money, so it’s a waste of time. Our festival attracts a lot of people anyways, and the money is all going towards every business there anyways, why even bother?
Well, since Walmart owes the state of WI more than $25 million dollars in taxes (which is in litigation now), I say screw Walmart. That’s tax money which pays for services for the people of WI.
I am all for this.
Walmart buys junk from China (no jobs in the US) and sells it to us at cheap prices (which is good because much of it will fall apart within a year), and then screws the state for taxes. Oh, and Walmart encourages its employees to go on public aid because they make so little money.
Yeah, I am MORE than all for this!
If government wants to keep the money local, they should apply this to farmers. It would work for food. I get the argument about retail having to buy their merchandise for real money and that looking like a disaster but the “local” money could be great incentive to buy local food at a discount to help even out the supermarket deals. Local food is yummier!!!
Beware! This kind of practice would put you at the same level of communal societies, not very congruent with 21st century global economics. Do not let anybody lure you into this trap. Regressing to communism has been proven wrong, just refer to what is going on in some countries in Latinamerica and Africa, not a good scene.
I could see it working. The current system is just fake money made from thin air by the federal reserve , which is a private bank. If the new money would have something to back it , it would be truthfully more valuable than the dollar. The problem would be basing it on the dollar , which is worthless , but recognized by everyone. The current money system is also illegal by constitutional standards , and to base something off of it would not be much of an advantage.
The new money could in theory work if people just agreed to it that it was worth something.
I think the town would need to back the new currency in something valuable, gold or silver comes to mind, to make this work. Other than that, it has a good chance of not working.
“Money” can really be anything: pieces of paper, blocks of legos, peanut shells… anything. The only thing that matters in terms of making anything function as a means of exhange is it’s relative value, and even more important, what is backing it? Provided a town can establish confidence in the unit of exchange, any form of tender can be issued, it’s just like any other promisary note or paper security. The real question is exactly how would these towns propose to create trust, assign value, and provide for the exchange of currencies while at the same time recognizing the fact that if their local currency gains any kind of substantial trading power, there will no doubt be problems with counterfeits and fraud.
This stuff already exists folks. They call it script, it IS legal, and organizations have been using it for fund raising for decades. For example, many parochial schools and their churches will go together with local businesses (like grocery stores, hardware stores, local clothing stores etc..) and make a deal. The churches will sell script, which helps the businesses by keeping sales local, and in turn that local business will donate a certain percentage (lets say $1 for every $10 spent) of all the sales of script back to the school / church, which the businesses can write off on their taxes as a donation. Many people prefer to buy script because it helps support their churches and schools or whoever else is doing the fund raising. The only difference here is some organization is getting the extra incentive as a fund raiser instead of people getting an extra dollar for every ten as a discount.
This stuff looks very similar to a gift certificate, which makes it no more expensive than a gift certificate is to produce (which means it’s cheap and cost effective). Most of them do have an expiration date on them like coupons do, which is about a year or so out from the purchase date. In a case like this there would most likely be a legally binding agreement that the local money would be good for an initial period of time (probably 6mo – year). So only if you’re going to buy more local money that you could spend in 6 months would you lose out.
Want to stop Walmart from selling cheaper stuff than local markets? Then abolish NAFTA! Remove the Federal Reserve, and put heavy tariffs on companies that were once American based, that moved to foreign soil, and then “import” the product back into the USA.
America was once great and proud because of it’s industries, and before the Gov’t “allowed free enterprise to move away into another country, and then market it’s cheap labor goods back to the US. If the Government, that is for the people, by the people, would actually work with the people, and stop big business from being in control of it, and give the power back to the people, then we’d get somewhere. Tax everybody 10% of their paycheck, and I mean everybody! Abolish the IRS, because there wouldn’t be the need for them, due to no more “returns”. The tax you pay, the country’s Gov’t uses to maintain itself. No more Gov’t pensions, only Social Security pensions (of which 5% of each paycheck is put away for retirement benefits), for the elderly over 65 (not 70!), so they can maintain without working themselves into the ground. That way their families can enjoy them before they die, and stories can be told of a once great and proud America! Local funny money, well…that just isn’t the proper answer!
This would be good, but I see one big problem.
How would we get the money to pay for the products we need. Local companies still need to pay for external products like supplies, waste management, and taxes on a state and federal level. Thus, this plan would eventually cause more local buisnesses to lose money and eventually close. If somebody can solve this, the plan could be foolproof. Please respond!
I have used such a local currency and even got involved in running it for 5 years here in California. I spent thousands of dollars and met many people within my community. There are approximately 70 local currencies in the country — the most famous being Ithaca Hours in Ithaca, NY. I used it to pay for rent, food shopping, clothing as well as some luxury items. I began accepting it at my own business and it drew people to me that might have never come before. It was great. The best part was a surprise to me tough — it was that I really developed a greater sense of community because of it.
Maybe local shop keepers should stop being such tight wads and sell their goods at competative prices. In todays economy, it is much easier and convenient and cheaper to drive the extra 10 miles to a walmart. For that matter, even a gas station chain that sells gas 50 cents cheaper than the local guys. Locals should get thier act together and quit complaining. Walmart is like the internet, it’s not going anywhere and it will keep getting better. Enough said.
Hmm…printing currency that only has value locally and is worthless anywhere else…oh yeah, I think they call that the “American Dollar.”
I would do anything to break the death grip that the unconstitutional “federal” “reserve” has on our currency. They are neither federal, they are a private banking cartel, nor do they have any reserves, they counterfeit our money and give it to their cronnies when the dollar still has value. By doing these things, they have destroyed the value of the dollar and have been confiscating the wealth of this country for almost 100 years.
This has happened just like Thomas Jefferson had predicted. “I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.”
Andrew Jackson (The Guy on the 20) was also wise enough to catch on to these Banksters, “”Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank…You are a den of vipers and thieves. I intend to rout you out, and by the grace of the Eternal God, will rout you out.”
It is time for every sovereign American to rout out the FED once more.
END THE FED!
@krobar, @lifestar, local currency is clearly constitutional. The U.S. Constitution gives the Congress the power to mint coins only. The implication here is that a local currency can not be produced in coins. The U.S. Constitution explicitly prohibits the States from printing paper money. The U.S. Constitution does not prevent the People from issuing their own currency.
There is a law on the books which prevents the people from issuing a monetary unit that is worth less than one dollar.
@docrice, while it is true that there are start up costs which most likely will have to be paid in the national government currency(Federal Reserve Notes), the system can become self-sustainable with enough traction.
While a local government may participate in the creation of a local currency so that it can ensure to get its piece of the pie (whether that’s tax revenue or simply local hegemony), it should not be the one to spearhead such a a project. A local currency system should be issued by a committee made of all relevant and effected parties (e.g., local merchants, professionals, local banks, non-profits/charities, residents/citizens, local government, etc)
Local currency increases the chances of locally-created wealth staying local, thus bolstering the local currency. A local currency is more likely to be paid out to local employees who will spent it locally. A local currency becomes another viable options for a small business seeking a small loan. A local currency organization can choose to issue loans at little or no interest for a nominal processing fee. A local currency returns economic sovereignty to the town or region and wealth sovereignty to the producers of the wealth. The local currency system users would no longer be at the mercy of interests rates set by a group of people who no nothing about their town, their lives, etc.
Local currency serves as a safe harbor, insulating it from the economic disasters of the national system. The exchange rate between the local currency and then national government money is controlled by the local currency system. The implication is that inflation can be kept in check and the value and strength of the local currency can be maintained by making the local currency more expense to purchase in FDR’s.
While a local currency could be issued in the form of checks or credits card are even virtually over the Internet, the basic form of paper makes it substantial and tangible in the hands of the unfamiliar. It also makes it accessible to those unfamiliar with the electronic and plastic forms of money.
Local currency does not replace, but rather complements the national government money, thereby giving the users a choice between a currency over which they have no control and that funds drug cartels and a currency over which they share control with other local users and that benefits the environment in which they live.
Local currency also has a social function as it encourages people to shop locally more frequently, thus strengthening the social fabric locally.
We’re forced to use paper money printed out of thin air by private bankers who charge us interest to use it. They control our politics, our media, and much of the dumbed-down publicly-educated American people who are not capable of seeing through the deception. It’s the evil Democrats. It’s the evil Repbulicans. It’s Ralph Nader’s fault. A house divided will fall. Don’t buy into the lie. Get educated. http://www.CampaignForLiberty.com – start on the road to TRUTH about our financial fiasco and learn who’s really to blame.
I’ll buy if they make them backed by gold and silver. US constitution: Article 1, Section 10: “No state shall enter into any Treaty,…; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts;….”
Local currency produced on a laser printer at city hall would be 10 times easier to counterfeit than currency produced at the us mint.
I know of small towns that have been doing this for decades, in a slightly different fashion. It works well, particulary during the holidays. We see employers buying “Chamber Bucks” for their employees rather than cash, and I think it causes those employers to be a bit more generous with the amount than what they might otherwise. It’s a good thing and it works.
Ithaca, New York has had their own local currency (Ithaca Hours) since 1991.
[www.ithacahours.org]
I can definitely see their use picking up these days.
My hometown has been doing this for as long as I can remember (at LEAST 20 years, probably longer.)
Its Called A LET System or LETS
[en.wikipedia.org]
And to all these people who claim its a waste of time or Unconstitutional….. Learn something before you bash it or deny its possibility you ignorant pathetic sheeple
And no, hippies are not the creators of this system, i dont think hippies like money anyway, most of them are Neo-Marxist, eco crazy, resource based economy type of people
For those claiming unconstitutional:
Article I, Section 8
Congress shall have the Power to coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures.
To provide for the Punishment of counterfeiting the Securities and current Coin of the United States.
Article I, Section 10
No State shall make any Thing but gold and silver Coin a Tender in Payment of Debts.
Seems to me that the Federal Reserve is unconstitutional.
It is a private bank.
It is not Congress.
Most importantly, it is not gold and silver Coin.
We’ve been duped and it is time to take our power back.
Read Common Sense Revisited, Author Unknown.
http://www.commonsenserevisited.org
Maybe if the exchange for something of value other than the dollar was used to obtain this alternative currency. Say gold or silver possibly.
What makes this any different than Travelers Checks? Businesses regularly accept them as an alternative form of currency, and they are not issued by the government.
I think it’s a good idea to encourage Milwaukee businesses somehow, if not with some weird currency thing then with something… I heard a rumor the other day that Atomic Records (an eastside institution) was closing…and yup, apparently, it’s true ([www.atomic-records.com])…
this seems really, really stupid, what makes anybody think that 110 dollars local for 100 dollars US is going to make this seem like a good idea to any local businesses??? what happens when the local business owners go to trade their local money back in for US and have to take a 10% hit on it??? then you are just stuck with local currency and the business owners are going to be trying to shove all the basically worthless local money on each other, somebody is gonna get screwed and you can just as easily use US dollars at local businesses. and what happens when it comes to paying taxes?
Does amazon.com accept local dollars?
River West is actually a small area in Milwaukee. I think this will be good for the area because within that area it is closer to a local shop rather than a Wal-Mart or such. Also, because of federal dollars losing value I will probably get a few.
Ithica NY has had this for years, many businesses will pay part of someones pay in “Ithica bucks” mosty you can only pay part of a bill with them too. Your $100 purchase might be 50-50 in local money and US money. It has worked for 20 years or more.