What Does Local Currency Do?

Local currency enriches everyone within the network by connecting people to each other. It allows individuals to utilize talents which may be unrewarded by the cash economy. It builds community by putting a human face on our economic transactions. It is by its very nature local, and thus it promotes a sense of place and is responsive to the people and the needs of this unique corner of the globe.

Local currency may be based on a unit of time, or equated in value to the national currency. In other words, some groups consider all work should be recompensed at the same rate, whilst others recognise that the market dictates higher rates per hour for valuable skills. Local currency systems are a form of gift economy, and as such are primarily cooperative in nature rather than competitive. In that respect they are naturally more egalitarian than the regular economy. Everyone's work is important, and no one's work is to be devalued. Therefore when rates per hour vary, they tend to vary less than in the normal economy, and groups almost always quote a rate per hour for members to use when they want to trade on an equal basis.

It also needs to be recognized that overhead costs for some services can be substantial. Costs such as office rental, travel, research, support personnel, and insurance can make it necessary for someone to charge much higher than 3 hours per hour, even though the actual 'take home' value of that service may only be 2 hours per hour. We encourage members to include overhead in the rates they charge, and to just try to be fair and reasonable in their analysis of those costs. Sometimes this may mean that a member will charge partly in local currency and partly in national currency (pounds) to cover overhead.

Next: How do I join?


 

Local Exchange • www.localexchange.org.uk
proggaprogga@gmail.com • 020-7607-7852
Licensed under the GPL • Local Exchange Credits