About Michiana Area Currency
Michiana Community Currency is a nonprofit association of Michiana residents who have volunteered to help build a community currency for our region. We began meeting and researching this idea in 2006 and have stepped up our efforts in response to the growing economic crisis. We will officially launch the new local currency soon!
Here's how it works:
1) We're now working to build a network of a minimum of 250 individuals and 50 locally owned businesses who agree to accept our community currency (when it is available) in exchange for some good or service. To help us build the network of backers of our local currency, contact us at info@michianacurrency.org.
2) We begin printing and circulating the money to this network once the currency is launched. Watch the Web site for some exciting new developments.
If you have any questions about MAC or community currency in general, please check out our frequently asked questions page.
Why Michiana Needs a Community Currency Now
Because of the global economic downturn, our region has and will continue to suffer from:• Unemployment
• Decreased public revenues
• Increased demands on public services
• Increased incentives to create informal markets which can serve local needs but can also reduce capacity for public regulation and can include illicit products and services
• Growing alienation of youth as they find few opportunities to be productive members of our society and economy
• Threats to social cohesion as residents compete for fewer jobs and scarce resources and struggle to remain in their homes
A Community Currency delinks our local economy from the national and global economies and allows local markets to operate, assigning values to goods and services that are based in and responsive to locally experienced benefits and costs. For instance, while there are few dollars available for services such as assistance to our senior citizens, school crossing guard services, maintenance of public spaces, and protection of our natural resources, these are all things we value highly as a local community. Using community based currencies, we can provide incentives for residents to provide these services. This can offset some of the negative effects of the economic downturn on our local economy, as it expands residents’ access to resources they can use to purchase local goods and services.
Also, national and global markets tend to devalue locally produced goods. As goods made outside our region become more costly, locally made goods will be more attractive. A local currency encourages local production and entrepreneurship, drawing from the talents and skills of residents rather than allowing outside investors and markets to determine what people and skills in our community are “valuable.”
A community currency can aid local government by fostering a spirit of self-help among residents. Denser local markets help build a sense of community as residents exchange services and goods more directly rather than through national and global commercial chains. The relative ease for individuals to offer their particular skills and goods facilitates the creation and growth of new, locally-based businesses.
How can Local Businesses Benefit from a South Bend Regional Currency?
Soon, the South Bend region will join scores of other communities across the United States (and world) that are printing their own local money. Local communities are finding themselves increasingly vulnerable to economic fluctuations caused by national and global economic pressures beyond our control. Community currencies can enhance the economic stability of local communities by strengthening our local economic base from the ground up. Rather than waiting for outside investment and sacrificing environmental and labor protections, we can work to expand economic possibilities within the region.We are building upon a model of community currency that has been tried and tested for over ten years in Ithaca New York. For more information about other local currencies including Ithaca Hours please visit our Resource page.
Here is how businesses can benefit from a local currency:
• During economic recessions and times of high energy costs, workers are less able to support local business with purchases. Even business owners and professionals spend less. Community currencies help local residents who cannot earn enough dollars to earn local money instead. While dollars may be scarce, the amount of local currency is designed to meet locally determined laws of supply and demand, thereby expanding local economic activity. Your potential customers may have few dollars to spend, but we’re creating opportunities for them to earn “community dollars” by providing services such as tutoring, dog walking, home repairs, catering, plant care, and other tasks for which there is strong local demand.
• Businesses may begin accepting community currency experimentally. First, they may start by setting a maximum of community dollars they’re willing to hold at any one time. For instance, some businesses may accept a maximum of a $2.00 equivalent on any purchase in local currency. As local money becomes accepted in more places, businesses might opt to expand the amounts they’ll accept for each purchase.
• Merchants expand their income by accepting community currency during slow days/times. Bowling allies and other facilities that are empty on weekdays or mornings can accept community dollars during specified hours. Plays and concerts can fill more seats by allowing half price or full price to be paid with local currency. Health clubs, dance studios, and movie theaters also may fill unused space/time with customers who might not otherwise spend dollars there. Slow goods can be moved faster when sold as community currency specials.
• Higher priced professionals can build a client base. Lawyers, doctors, chiropractors, carpenters, plumbers, massage therapists, and others can keep regular clients and find new ones among those who can afford to pay in community currency but not U.S. dollars.
• Some employees will accept local currency as pay. While workers must be paid at least a minimum wage in U.S. dollars, additional compensation in local currency as fringe benefits can be made by agreement posted at the workplace. Such wages are not subject to withholding and in some cases are tax-exempt (IRS Reg. [1322.01 § 1.132-1]).
• Businesses can apply for community currency loans, according to policy being created by network participants. Community currency can be used to pay business expenses such as wages, inventory, repairs/ contractors, or rent. They can be paid back in community currency.
• The bottom line is that when you accept community currency, you encourage the “Buy local” movement, which keeps more money here, both dollars and community money, where it can buy what you sell. You’re helping to expand trade in our region, fueling a strong economy and a rich community.