Monday, August 27, 2012

Local Economies

In this section of the novel, author Bill McKibben discusses a major point in making a local economy work. The number one thing is that you must create a local currency. This type of local currency aims to supplement money not to replace it. McKibben explained this theory using a hypothetical situation about a small town in Vermont, in this experiment he spent his "Burlington" dollars on local things and spent his US. dollars on items that had to be purchased far away. By using this hypothetical situation McKibben explained that the money is not a replacement but merely a supplement. A quote from this section that I found to be interesting was, "Which means, theoretically, that since the value of money is based on trust, there should be room for plenty currencies to exist side by side" (McKibben 163).

When I began reading this section, I though McKibben was crazy for thinking that a local town could have their own currency. But as I kept reading, I understood what he meant, that the local money would only be used in town and regular US money outside of town, creating a stronger local economy.

No comments:

Post a Comment