Mendo Island Journal — Timely. Useful. Sometimes Cranky.

Posts Tagged ‘Hope’

Prepare for the best

In Around the web on February 16, 2009 at 12:24 pm

From Philadelphia Citypaper

As usual, the future will be different. Philadelphia’s responses to global warming and market cooling, high fuel and food prices, health unsurance, mortgages, student debt and war will decide whether our future here becomes vastly better or vastly worse. Whether we’re the Next Great City or Next Great Medieval Village. Imagine Philadelphia with one-tenth the oil and natural gas.

But to hell with tragedy. Let’s quit dreading news. Take the Rocky road. There are Philadelphia solutions for every Philadelphia problem.

Imagine instead that, 20 years from now, Philadelphia’s green economy enables everyone to work a few hours creatively daily, then relax with family and friends to enjoy top-quality local, healthy food. To enjoy clean low-cost warm housing, clean and safe transport, high-quality handcrafted clothes and household goods. To enjoy creating and playing together, growing up and growing old in supportive neighborhoods where everyone is valuable. And to do this while replenishing rather than depleting the planet. Pretty wild, right?

Entirely realistic. Not a pipe dream. And more practical than cynical. The tools, skills and wealth exist.

Mayor Michael Nutter foresees we’ll become the “Greenest City in the United States.” So it’s common-sensible to ask, “What are the tools of such a future?” “What jobs will be created?” “Who has the money?” “Where are the leaders?” “How will Philadelphia look?” “What can we learn from other cities?”…

As President Barack Obama says, “Change comes not from the top down, but from the bottom up.” Philadelphia’s chronic miseries suggest that primary dependence on legislators, regulators, police, prisons, bankers and industry won’t save us. They’re essential partners, but the people who will best help us are us. As stocks and dollars decay, most new jobs will be created by neither Wall Street nor government. We and our friends and neighbors will start community enterprises; co-operatives for food, fuel, housing and health; build and install simple green technologies to dramatically cut household costs. Then we can have fun…

Some of the proposals sketched here can be easily ridiculed, because they disturb comfortable work habits, ancient traditions and sacred hierarchies. Yet they open more doors than are closing. They help us get ready for the green economy, and get there first. Big changes are coming so we might as well enjoy the ride. You have good ideas, too — bring ‘em on…

Keep reading Prepare for the Best
Hat tip Energy Bulletin

See also Mendo Time Bank

and Mendo’s Garden Project

and Mendocino County’s Farmers Markets

and Willit’s Economic Localization


The obligation

In Dave Smith on February 15, 2009 at 10:59 am

By Seth Godin
Business Guru
from his book Tribes

Not too far from us, a few blocks away, there are kids without enough to eat and without parents who care. A little farther away, hours by plane, are people unable to reach their goals because they live in a community that just doesn’t have the infrastructure to support them. A bit farther away are people being brutally persecuted by their governments. And the world is filled with people who can’t go to high school, never mind college, and who certainly can’t spend their time focused on whether or not they get a good parking space at work.

And so, obligation: don’t settle.

To have all these advantages all this momentum, all these opportunities and then settle for mediocre and then defend the status quo and then worry about corporate politics–what a waste.

Flynn Berry wrote that you should never use the word “opportunity.” It’s not an opportunity, it’s an obligation.

I don’t think we have any choice. I think we have an obligation to change the rules, to raise the bar, to play a different game, and to play it better than anyone has any right to believe is possible.


From Dave Smith

On July 5th 1932, in the middle of the Great Depression, the Austrian town of Wörgl made economic history by introducing a remarkable complimentary currency. Wörgl was in trouble, and was prepared to try anything. Of its population of 4,500, a total of 1,500 people were without a job, and 200 families were penniless.

The mayor, Michael Unterguggenberger, had a long list of projects he wanted to accomplish, but there was hardly any money with which to carry them out. These included repaving the roads, streetlighting, extending water distribution across the whole town, and planting trees along the streets.

Rather than spending the 40,000 Austrian schillings in the town’s coffers to start these projects off, he deposited them in a local savings bank as a guarantee to back the issue of a type of complimentary currency known as ’stamp scrip’. This requires a monthly stamp to be stuck on all the circulating notes for them to remain valid, and in Wörgl, the stamp amounted 1% of the each note’s value. The money raised was used to run a soup kitchen that fed 220 families.

Because nobody wanted to pay what was effectively a hoarding fee [technically known as 'demurrage' and often referred to as "negative interest"], everyone receiving the notes would spend them as fast as possible. The 40,000 schilling deposit allowed anyone to exchange scrip for 98 per cent of its value in schillings. This offer was rarely taken up though.

Of all the business in town, only the railway station and the post office refused to accept the local money. When people ran out of spending ideas, they would pay their taxes early using scrip, resulting in a huge increase in town revenues. Over the 13-month period the project ran, the council not only carried out all the intended works projects, but also built new houses, a reservoir, a ski jump, and a bridge. The people also used scrip to replant forests, in anticipation of the future cashflow they would receive from the trees.

The key to its success was the fast circulation of scrip within the local economy, 14 times higher than the schilling. This in turn increased trade, creating extra employment. At the time of the project, Wörgl was the only Austrian town to achieve full employment.

Six neighbouring villages copied the system successfully. The French Prime Minister, Eduoard Dalladier, made a special visit to see the ‘miracle of Wörgl’. In January 1933, the project was replicated in the neighbouring city of Kirchbuhl, and in June 1933, Unterguggenburger addressed a meeting with representatives from 170 different towns and villages. Two hundred Austrian townships were interested in adopting the idea.

Unterguggenberger was opposed to both communism and fascism, championing instead what he referred to as ‘economic freedom’. Therefore, it was deeply ironic that the Wörgl experiment was first branded ‘craziness’ by the monetary authorities, then a Communist idea, and some years later as a fascist one.

Read more local currrency success stories from the US and abroad at Mendo Moola


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