What is money? Peter North, University of Liverpool A note on positionality Theorising Money The Evolutionqry School. The Evolutionqry School. The Commodity School. The Commodity School. Capitalist Credit Money created by trusted institutions. A claim on commodities in the future. Capitalist Credit Money created by trusted institutions. A claim on commodities in the future. Monetarism. Monetarism. Chartalists: state-created money Chartalists: state-created money Simmell: universal money as freedom. Simmell: universal money as freedom. Zelizer: Specialist money, emotional money. Zelizer: Specialist money, emotional money. Household economic relations involve an intricate mix of intimacy and economic activity. They interweave long term commitment, continuous demands of co-ordination and reciprocity, relations to kin, friends and others outside the household. They impose shared vulnerability to the failures, mistakes and malfeasance of other household members when households get into financial trouble or break up, economic interactions of family members add yet another layer of complexity: kin help the unemployed, and financial roles often reverse, with children, for instance, now supporting their parents. Intimacy and economic activity continue to intersect. (Zelizer 2005:284) Towards a theory of economic difference There are different sorts of transaction There are different sorts of transaction There are different forms of labour. There are different forms of labour. There are different ways of generating and distributing a surplus, and There are different ways of generating and distributing a surplus, and Different ways of maintaining the commons. Different ways of maintaining the commons. What are the diverse economic alternatives we could draw on What are the diverse economic alternatives we could draw on What might be the role of alternative currencies? What might be the role of alternative currencies? The politics of alternative money The money we use is simply a social construction, a collective agreement to accept a certain form of measurement, store of value, and unit of exchange. The money we use is simply a social construction, a collective agreement to accept a certain form of measurement, store of value, and unit of exchange. Once we accept that money is not a thing out there, external to us, but a social construction, it follows that we can change it: Once we accept that money is not a thing out there, external to us, but a social construction, it follows that we can change it: We can make collective agreements to use other forms of money that will operate (at least) as effectively as the money issued by states. We can make collective agreements to use other forms of money that will operate (at least) as effectively as the money issued by states. Better Money? Controlled by us, not them Controlled by us, not them Values people and work before profitability; Values people and work before profitability; Stresses liquidity to ensure that needs get met before artificial scarcity to ensure labour discipline and exchange rate or price stability; Stresses liquidity to ensure that needs get met before artificial scarcity to ensure labour discipline and exchange rate or price stability; No or low interest tool not end in itself. No or low interest tool not end in itself. Variety to avoid vulnerability to crisis in money monocultures. Variety to avoid vulnerability to crisis in money monocultures. A way to unleash what really matters, our creativity, visions, skills and resources. A way to unleash what really matters, our creativity, visions, skills and resources. Owens labour exchange. revenue has but one legitimate source - it is derived directly or indirectly from the labour of man 1930s stamp scrip - USA To all. Slowly circulating money has thrown the world into an unheard of crisis, and millions of working people are in a terrible need. From the economic viewpoint, the decline of the world has begun with horrible consequences for all. Only a clear recognition of these facts and decisive action can stop the breakdown of the economic machine, and save mankind from another war, confusion and dissolution. Men live from the exchange of what they can do. Through slow money circulation this exchange has been crippled to a large extent, and thus millions of men (sic) who are willing to work have lost their right to live in our economic system. The exchange of what we can do must, therefore, be again improved and the right to live regained for all of those who have been cast out Green Dollars/LETS Started 1987 Vancouver Island. Now many anglo-saxon countries. Directory, Checkbook, accountant. Currency is green dollars or a locally identified name. Locality is important. Denominated in national currency with hour referent /moral economy. Backed by your personal Backed by your personal commitment to repay I used it a lot because it had a lot of things I wanted, quite essential things rather than luxuries, things that others would not see as essential. And I really wanted those things and I was quite creative about getting them. Sometimes people, I managed to coax people to do things that they werent necessarily offering in the directory. I knew someone that was quite handy, and they'd done a bit of plumbing and I suggested that they would be able to remove some gas piping. I had this big gas thing in my front room and I wanted a fire there. I coaxed them into removing that, which was really good. Someone changed my toilet for me who....who needed a little encouragement a bit but it was a brilliant job. A guy got my car through the MOT... So I felt like I really needed these things, so I went out to get them. Katrina, Manchester LETS Time Money Money denominated in hours: one hour, one credit. Co-production social service ethos is crucial. Balance does not matter generational solidarity. Connections made by a broker and by telephone. Usually more successful when run by a social services agency. Unlike LETS, does reach the poor/excluded/elderly. Found in inner cities, outer estates. Ithacas vision Ithacans have the talent to rebuild our economic base, to create a more ecologically and socially just economy which employs more of us, more reliably, at creative healthy work. We can revitalise The Commons, establish clean, locally-owned industry, promote local agriculture and worker ownership, and relieve the cost of living Mass use: Argentina. Living from the Trueque A third microemprendir made pancakes. At the market where we met her she took home enough vegetables for three days, a shaver, a torch, garlic, twelve little pizzas (enough for one family meal), juice, a packet of biscuits, toilet paper; four lemons (enough for a week); and she still had some creditos left over. Before the crash, just visiting nodes on Saturdays and Sundays, she could get enough to eat for the whole week, even too much for the week: for me it was like a job... that year I could live of the trueque, more or less. But it was not an easy life meat would be scarce. She had to budget carefully, and with a friend she set up a system where specific items would be searched out from the myriad nodes. Without careful planning, she said, if you are not a realist, youre lost it worked very well for me, but you did have to be going around. Solidarity and support We are all friends We are all friends we are like a large solidaristic family we are like a large solidaristic family yes, it is wonderful, we talk and talk, ideas are exchanged and friendships are made. yes, it is wonderful, we talk and talk, ideas are exchanged and friendships are made. Charly, before you came we used to greet each other; now we know each other. Charly, before you came we used to greet each other; now we know each other. I have lived solidarity here you chose what you consume; the encounter with things is different; Im taking [home] things made with love. I have lived solidarity here you chose what you consume; the encounter with things is different; Im taking [home] things made with love. it is therapeutic; we are all in the same situation; if we had money we wouldnt come here; here there are no differences between different social classes. it is therapeutic; we are all in the same situation; if we had money we wouldnt come here; here there are no differences between different social classes. Our main stand is that barter networks are able to reinvent the market and not only reinclude people that have been excluded by globalisation, but even beyond can include people never included before. We believe that we need not oppose this new market to the formal market, but we need rather to develop our ability to join them, in different rhythms and forms, if we choose to do it. We also believe we need not oppose to government but rather develop our ability to act with government in order to build the democratic life with equity and solidarity instead of competition and exclusion. Finally we believe that barter networks is able to re-shuffle cards to build a new social game. (Primavera, De Sanzo et al. 1998). (Primavera, De Sanzo et al. 1998). Creating alternatives to paid work I actually run a small one person business. So, yes. It has helped. The fact that my business is going ahead and Im turning it to a Kiwi (dollar) business is one that I started off doing bits and pieces for people on Green Dollars. Because I dont think I would have had the courage to go out on alone. To me its a case of Green Dollars showing me a way that I can beat the system by working by myself to do things. Green Dollars actually gives me security because I know if I go out there and do the extra, Im going to get what I want. It depends on a persons mental attitude often to work. If you enjoy your work nine-to-five, thats fine. If you dont enjoy its a killer. But the Green dollars, I can do what I want, when I want to do it. I enjoy this more (than a nine to five job) Ive got freedom. If I wanted to work from two oclock until five oclock in the morning, fine, I can go and do it and I often do. Jan, Wellington Green Dollars A natural tendency to barter, truck and trade Ive been trading most of my life. as I was always trading anyway I could be a good member of the club, and yes we do trading every so often, me and my partner, and we do all sorts with the veggies, care giving, baby sitting, catering, all sorts of weird and wonderful things. Been in a couple of years, and I think we do at least two or three trades a month. My other half does gardens and steps for someone at the moment, for a member, and weve done wood.... Fruit and vegetables, plants, housework. Not part of a system, but weve always traded something for something. For example, we did housekeeping for a fireplace. Did stuff and got wood for the fire. My daughter is three, and 90% of the childrens clothes are traded for other clothes. We only spend money when we sorta have to spend money. But New Zealand is one of the richest countries for trading, because somebody always needs something that you might have, like baby stuff and baby knitting, Most people dont know whats under their noses for trading. Youve just got to open your eyes a wee bit for trading purposes. Lynn, Blenheim Green Dollars Alternative Economic Spaces It was kind of an icon, I suppose. [laughs] And philosophically its what a lot of people believe in. its been around for a while, its something that we can identify with, you know, it feels good, you know, people say, oh yes, Ive been a part of that for so long. Yes. I dont know if icon is the right word, but (emblematic?) Yes, yes. we tend to want to do things a little bit different here, yes. I suppose part of it is the isolation, and having something thats unique to itself, although theres other ones around. Its something that people say, yes, this is something thats unique to Golden Bay, this is part of one of the things thats Golden Bay. (Golden Bay attracts) a lot of artists, a lot of natural healers, probably a lot of people who would like to try to get by without having a large income. People who like rural environments. The climates pretty good,, the rivers, the ocean. The town, going through the town, its a pretty interesting town, all the different types of shops. Its not a typical New Zealand town. I would say people are probably not in such a hurry as in other places. Theres a lot of artists who work here, the natural environment is very beautiful. And its probably, the people who are tired of the rat race lets say. Murray, HANDS, Golden Bay A humane economy I see it as a balanced economy - a balance between men and women, between the masculine and feminine in each of us... An economy that calls on each of us to practice in that kind of way is more likely to soften people than this horrendous situation that frightens so many people - men as much as women The LETS community does look at a transaction as a relationship whereas the commercial world looks upon a transaction as a transaction. You need some respect for the person you are dealing with as you know they don't have to do it. It's got to be mutually beneficial, whereas a transaction in the real world does not have to be...there's an imbalance of power. The LETS community does look at a transaction as a relationship whereas the commercial world looks upon a transaction as a transaction. You need some respect for the person you are dealing with as you know they don't have to do it. It's got to be mutually beneficial, whereas a transaction in the real world does not have to be...there's an imbalance of power. A demonstrator of liberation To me LETS is mainly about the.....educative thing. I mean, the kind of capitalist cynicism that goes around, about market forces and about the laws of supply and demand and about people being basically greedy gits that rip people off all the time, I think LETS is a good way of demonstrating, 'No - that's not actually true'. People are capable of being like that but they are also capable of being different. LETS is a good way of demonstrating to people even if they are not actually involved in it. They can see, well there's a community, a community that's scattered around Manchester." Theres still a moment of breathlessness when you hold a Brixton Pound in your hand. As if you were somehow touching the stuff of life. And in a way you are. Because money is like blood. It circulates around us, and when it disappears somewhere because of some squall on Wall Street our lives seize up a little. Money is life, and we can make our own. Thats why I say those Brixton pound notes are alive. It is a small liberation to use one. A bit like the moment Gandhi made salt for the first time. a symbolic moment of revolt, using the stuff of life. So every time we use one of these notes, it seems to me and we are going to have to use them if this is going to work it is a moment of liberation. David Boyle, new economics foundation. I think its fantastic: I love the idea that it feels like anarchy, it feels like a real sort of, two fingers up in the air to big business, to Tesco, to a system that, not through choice, I am part of. It feels resilient, exciting and brave. It feels like a step out in a different direction, Its very empowering.... Its a real act of positive defiance... I love it! Jane Rose. Transition Stroud The transition currencies? Incentives: strong or lacking? Incentives: strong or lacking? Incentives for whom? Trade offs? Incentives for whom? Trade offs? Trust and transparency Trust and transparency Town or regional pride? Town or regional pride? The materiality of the currency The materiality of the currency Everyday spending and banking practices. Everyday spending and banking practices. The extent or otherwise of existing or possible local circuits of production and exchange. The extent or otherwise of existing or possible local circuits of production and exchange. Scale: material and ethical localisation. Scale: material and ethical localisation. Alternative currencies as rurql development mechanisms As utopian politics - demonstration of possibilities. Learning about money, society, and work - and learning to live in more convivial and cooperative ways. Money did enable people to create new forms of money and think about it in different ways. Livelihood -makes alternative livelihoods possible, if you have the resources, especially in some places. Are they are attractive to large numbers of people contestable but note transition movement. Is a move from circulation to production possible? Is the very local the right scale? Local pride. Towards a theory of economic difference There are different sorts of transaction There are different sorts of transaction There are different forms of labour. There are different forms of labour. There are different ways of generating and distributing a surplus, and There are different ways of generating and distributing a surplus, and Different ways of maintaining the commons. Different ways of maintaining the commons. Are there certain places where this all comes together? Are there certain places where this all comes together? The cheap prices of commodities are the heavy artillery with which it batters down all Chinese walls, with which it forces the barbarians intensely obstinate hatred of foreigners to capitulate. It compels all nations, on pain of extinction, to adopt the bourgeois mode of production; it compels them to introduce what it calls civilisation into their midst, i.e., to become bourgeois themselves. In one word, it creates a world after its own image. Localisation or local money? I believe in supporting local small businesses, I have a tremendous awareness of how in Great Barrington and towns like this, small businesses support each other. (But) I dont see how a second currency advances that cause. The plain truth is that Berkshares are mostly irrelevant now, they are so little used that they don't even amount to an annoyance. They simply don't matter, or really amount to anything anymore. Berkshares became a distraction and detraction from the legitimate work that Schumacher stood for.