If you're fresh out of dollars, perhaps a Detroit Cheer, Bay Back or BerkShare will do
If you're fresh out of dollars, perhaps a Detroit Cheer, Bay Back or BerkShare will doCommunities across America are bypassing the dollar and creating their own currencies in an attempt to help both consumers and businesses struggling in the recession.
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what an idea, sirji! Cheer money is being used in some parts of Detroit, USA. Three businesses are reviving a Depression-era idea of creating local currency in order to keep money earned in Detroit in the local community |
The idea, borrowed from the Depression era when the currencies were known as "scrip", is designed to boost local spending and keep money circulating within the community.
Typically, a group of businesses print a new currency, which shoppers can then buy at a discount typically one dollar will cost 90 to 95 cents and spend at full value with participating companies.
75 currencies
Some of the currencies have been around for years, but the recent economic downturn has encouraged others to follow suit. According to some estimates, there are now more than 75 local currency systems across the country.
Others include the Ithaca Hours in upstate New York and the Plenty in North Carolina.
Under US law, small communities can produce their own currency so long as it does not include coins and does not resemble federally-issued money.
The currencies are not a tax dodge as the income to participating businesses is liable to tax. In Traverse City, Michigan, more than 100 businesses accept Bay Backs.
Around $2 million (Rs 10 crore) worth of BerkShares the most established local currency is circulating in the Berkshires, a rural area in southern Massachusetts.
"It reformed the way many business owners and residents think about their local economy and helped educate the community on why shopping locally matters," said Susan Witt, a member of the BerkShares board.
In Detroit, where unemployment stands at 22 per cent, three businessmen are distributing more than $4,500 (Rs 2.26 lakh) worth of Detroit Cheers for customers to spend in any of a dozen shops.
