Wisconsin Towns Could Print Local Money to Encourage Local Spending

Two Milwaukee neighborhoods are considering printing their own currency for exclusive use in local stores and businesses, to encourage residents to spend their money in ways that benefit the local economy. The neighborhoods of Riverside and East Side are currently discussing the possibility, in the hopes of keeping their local economy afloat even while the nation suffers a recession.

From The Chicago Tribune:

“You have all these people who have local currency, and they’re going to spend it at local stores,” said Sura Faraj, a community organizer who is helping spearhead the plan. “They can’t spend it at the Wal-Mart or the Home Depot, but they can spend it at their local hardware store or their local grocery store.”

Incentives could be used to entice consumers into using the new money. For example, perhaps they could trade $100 U.S. for $110 local, essentially netting them a 10 percent discount at participating stores.

This is a really cool idea. It makes sense to support your local community first, especially during times of economic turmoil. Incentives to buy local could really help small companies stay in business until the national economy gets back on track, and we all know the environmental benefits to buying local.

I can see something like this really taking off in my own community, where the ‘shop local’ movement is vocally and passionately supported by residents.

If you’re interested in starting something like this in your town, just make sure the money you design looks nothing like real federal money, or you’re stepping into counterfeiting territory.

Link [The Chicago Tribune]

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