Let’s Get Real About System Change

Time Dollars & The Core Economy in the Context of Market and System

Time Dollars as a Complementary Currency and Its Potential for System Change Claim TD’s biggest “weakness,” the Rejection of price and interest, is its most important strength for opening up a new economic space of possibilities in a world increasingly driven by “systems” –Elements of argument: Time Dollars is located within 3 different kinds of economy – and, even more importantly, is located at the boundaries between those economies Each of the three has its own characteristic feedback loop Nature of the feedback loop with TDs is key to creating new possibilities for interface between the three economies, that is, fundamental change Change must occur subsystem by subsystem

Three Kinds of Economy Core Economy Home, Neighborhood, Community – organic, not “systematized” Production based on interdependence Distribution principle: need, family status Market Economy Market, for-profit organizations, banks – highly systematized Production principle: specialization Distribution principle: price Public Purpose Economy Government, non-profits – increasingly systematized Production principle: specialization Distribution principles: public interest

Characteristics of Market Positive feed-back loops »Interest »Price – rewards what’s scarce: specialization Impact of information age »Money as fuel and engine for market »Information technology = high octane additives »What price and information both drive: formation of systems that increase effectiveness of feedback loops Ultimately – feedback loop is about MORE

Characteristics of The Public Purpose Economy Fuel for this economy: »Votes »Money Feedback loop is complex – both +ve and -ve »Votes – the stop/go of politics »Money – buys votes »Access – political influence related to money »Systems – confirmatory data/outcomes Ultimately, feedback loop is about »Political Interests »More (as related to money)

Characteristics of The Core Economy Fuel for this economy: »Relationships »Some money Feedback loops depend on: »Psychological rewards/punishment »Some money »“Systems” which are small/restricted/”organic” Ultimately, functional feedback loop is about »Stability »Security »Happiness

Market’s Creeping Colonization Of the Core Economy

How to Push Back Against The Market’s Colonization of the Core Economy? The Three “E’s” of Market Dysfunctionality: Externalities »Environmental »Social: rich and poor alike » Isolation » Inequality Exclusions »Elderly »Fragile »Unskilled Excess »400,000 Americans every year dying from obesity

Public Purpose Economy Pushing Back? Or Transmitting?

Time Dollars at Intersection of Core, Market, and Public Purpose Economies

Can Time Dollars Help Strengthen the Core Economy? Characteristics of Time Dollars: 1 hour contribution =1 Time Dollar No price or interest Feedback loop = Psychological reward of “the gift” Ultimately – feedback loop is about »Relationship »Self-Esteem »Heart Space

Time Dollars Four Core Values Assets/ Equality Everyone has something to contribute Redefinition of Work Building home, family and community is real work Reciprocity Two-way giving is more powerful than one-way giving Social Capital No person is an island – we are Each members of community

Creating a Typology of Time Dollar Exchanges – Step One: Types of Transations Generalized Transactions » Anyone can earn » Anyone who earns can spend Neighbor-to-Neighbor » Neighbor-to-Neighbor Specialized Transactions » Targeted populations/groups » Earning and Spending for Specific Purpose/Outcome Peer Tutoring, Youth Court » Peer Tutoring, Youth Court

Creating a Typology of Time Dollar Exchanges: Step 2: Economic Domains and TransactionTypes Economic Domains Where Time Dollars Operate » Core Economy » Public Purpose Economy Two main Types of Time Dollar transactions » Generalized » Targeted/Specialized

Typology of Time Dollar Exchanges Step 3: A Time Dollar Matrix By Economic Domains and Types of Transactions

Time Dollar Exchanges: Neighbor-to-Neighbor vs Specialized

Neighbor-to-Neighbor (Organic) in Relation to Specialized (Structured)

Claim: “Organic” and “Structured” Time Dollars Working Together – and located at the intersections of the Market and Public Purpose Economies – create new possibilities for systems change

“Organic” Time Dollars & System Change Anyone can join and earn – anyone who earns can spend: »Individuals in the community »Non-profits & agencies »Businesses »Examples: Community Exchange Portland Maine Portland Maine Potential: Four core values expressed organically Challenge: How to secure support for brokering role

“Structured” Time Dollars for System Change Members of specific groups can earn Contribute to mission Time Dollars are cashed in for “rewards”: » services » goods » possibilities Resources provided by Public Purpose and Market Economies Youth Court, Cross Age »Examples: Youth Court, Cross Age Potential: Principles Expressed by Design Challenge: Going against “the systems” as they now exist Danger: Can be used in manipulative/coercive way

Time Dollars in Relation to Market: Reinforcing The Core Economy through organic/structured forms

What System Change Means with Time Dollars A change in: »Producers »Product »Process »Cost

Summation Time Dollars have opened up opportunity space Neighbor to Neighbor plus Specialized together have forged a new kind of linking of the core, market, public purpose economies How come?: –Positioned at the “boundaries” between economic domains –Nature of feedback loop = substantive –Limitations of the currency force innovative/creative approach to structure/systems to reinforce the Core Economy and allow for “pushing back” against the systems of the Market and Public Purpose Economies in creative and constructive ways