Spring Break
It's All About The BerkShares
Small Town Switches To Local Currency System To Control Economy
Aaron Boyd
Issue date: 12/5/07 Section: News
GREAT BARRINGTON, Mass. - Strung along Route 7 in Massachusetts are the Southern Berkshire Mountain towns of Sheffield, Great Barrington, Stockbridge, Lenox and Lee. They are united by geography, common society and now a common local currency. The BerkShare dollars and the company that produces them, BerkShares, Inc., are the beginning of a movement designed to keep control over the region's economic destiny at home.
BerkShares aren't the first local currency to appear in the U.S. Some, like the Liberty dollar, are paper representations of gold and silver reserves. Others are based on philosophical ideas, like Time Bank, a "currency" based on returning service for service to promote community outreach. And still others are more virtual, such as Common Good in nearby Ashfield, Mass., a credit system meant to stabilize returns on savings, set to begin in 2008.
But the BerkShare is unique. It lingers in the gray area between coupon and currency. A 10 percent discount for use of the currency is the driving force behind the movement, giving consumers a reason to support the program.
In time, the BerkShare has the potential to become a legitimate form of currency in its own right. However, if it doesn't gain broader appeal by March, the entire community will have to exchange them at participating banks, leaving those who couldn't spend them in time to foot the 10 percent bill.
That time is a long way off, said Susan Witt, director of the E. F. Schumacher Society, a non-profit organization dedicated to promoting strong local economy. Witt said the BerkShare dollar is on step 20 of about 50 required to establishing a competitive local currency. For now, the BerkShares are tied directly to the federal dollar and any discussion otherwise is purely theoretical.
BerkShares, Inc. was started by the Schumacher Society on Sept. 30, 2006. Under Witt, the society has begun a strong values campaign aimed at keeping the focus on the local community. The BerkShares have the heart of these values printed right on the front: "Community, Economy, Ecology, Sustainability." It's about "slow money," forcing customers off the internet and into the local stores, Witt said. The transactions become more personal; community becomes a part of business.
BerkShares aren't the first local currency to appear in the U.S. Some, like the Liberty dollar, are paper representations of gold and silver reserves. Others are based on philosophical ideas, like Time Bank, a "currency" based on returning service for service to promote community outreach. And still others are more virtual, such as Common Good in nearby Ashfield, Mass., a credit system meant to stabilize returns on savings, set to begin in 2008.
But the BerkShare is unique. It lingers in the gray area between coupon and currency. A 10 percent discount for use of the currency is the driving force behind the movement, giving consumers a reason to support the program.
In time, the BerkShare has the potential to become a legitimate form of currency in its own right. However, if it doesn't gain broader appeal by March, the entire community will have to exchange them at participating banks, leaving those who couldn't spend them in time to foot the 10 percent bill.
That time is a long way off, said Susan Witt, director of the E. F. Schumacher Society, a non-profit organization dedicated to promoting strong local economy. Witt said the BerkShare dollar is on step 20 of about 50 required to establishing a competitive local currency. For now, the BerkShares are tied directly to the federal dollar and any discussion otherwise is purely theoretical.
BerkShares, Inc. was started by the Schumacher Society on Sept. 30, 2006. Under Witt, the society has begun a strong values campaign aimed at keeping the focus on the local community. The BerkShares have the heart of these values printed right on the front: "Community, Economy, Ecology, Sustainability." It's about "slow money," forcing customers off the internet and into the local stores, Witt said. The transactions become more personal; community becomes a part of business.
Be the first to comment on this story