New age town in U.S. embraces dollar alternative

[TechBear_Seattle]

New age town in U.S. embraces dollar alternative

GREAT BARRINGTON, Massachusetts (Reuters) - A walk down Main Street in this New England town calls to mind the pictures of Norman Rockwell, who lived nearby and chronicled small-town American life in the mid-20th Century.

So it is fitting that the artist's face adorns the 50 BerkShares note, one of five denominations in a currency adopted by towns in western Massachusetts to support locally owned businesses over national chains.

"I just love the feel of using a local currency," said Trice Atchison, 43, a teacher who used BerkShares to buy a snack at a cafe in Great Barrington, a town of about 7,400 people. "It keeps the profit within the community."

There are about 844,000 BerkShares in circulation, worth $759,600 at the fixed exchange rate of 1 BerkShare to 90 U.S. cents, according to program organizers. The paper scrip is available in denominations of one, five, 10, 20 and 50.

The article continues at http://news.yahoo.com/s/nm/20070619/us_nm/usa_economy_berkshares_dc

Is Great Barrington really a "new age" town, or is Reuters being condescending?

The Wikipedia has a list of community currencies in the United States as well as a more general article on local currencies.

[soothsayer]

1. Very clever. I like it!

[stellanoir]

2. If you think about it. . .

many of the more pragmatic aspects cloaked in New Age jargon aren't that far off from qualities reflected in Yankee ingenuity really.

I'm from a long line of Swamp Yankees on my mum's side and lots of my maternal relatives are extremely spiritual but they exude it more in their actions and humor than in slogans or platitudes.

Great Barrington used to have a fair amount of diversity for a small New England town. Haven't been there in many years though.

I would presume Reuters is being condescending or facetious at least.

[TreasonousBastard]

3. Interesting idea, but...

while the Wiki article mentions that many of these alternative currencies came about because of the lack of as decent hard currency, it seems to gloss over that "minor" fact.

I'm not sure how many of thse schemes are sustainable without the dollar dropping through the floor and economic collapse here, but most seem to be an extension of barter systems that popped up years ago. The primary local problem with barter was valuing goods and services and keeping accounts, so "barter cash" arises, just like any other money.

About taxes... I don't know the details of each place that does this, but somewhere down the line taxes are going to be demanded, and you don't pay taxes in local scrip. In the past, taxes were a serious problem for the barter sytems, and some were put out of business by the IRS thanks to some serious underreporting. Sales and other state and county taxes, federal taxes, payroll taxes... all gotta be paid in coin of the realm when they get paid on the value of the scrip.

Outside vendors, too, and you gotta make change in greenbacks for tourists and others outside the system, and you might wander out of town yourself so you have to find moneychangers for a ready supply of gummint issued cash. This lack of a closed system could easily destroy any advantages the localbucks have due to some variation of Gresham's law.

Oh, and anything other than using this "money" sort of like coupons is illegal since only the gummint can issue real money. That can put a serious crimp in the scheme.

[Drifter]

4. Until counterfeiters ...

completely flood the town with bogus notes, and the town goes bankrupt.

It is a stupid idea.

Cheers
Drifter

[xchrom]

5. very cool!

i love programs that really support the local community.:applause: