Would A Local Currency Help Shiawassee?

“Lowly, unpurposeful, and random as they may appear, sidewalk contacts are the small change from which a city’s wealth of public life may grow.” –Jane Jacobs from “The Death and Life of Great American Cities.”

Ok, the question is, how do we encourage people to spend their money in Shiawassee rather than Genessee, Ingham, Saginaw, Clinton, etc? What incentive can we offer (other than saving gas & time) to get residents to shop here instead of somewhere else?

Berkshire, Massachusetts has an interesting approach: offer a local currency.

The ‘BerkShares’ site explains the benefits of this local currency:

The purpose of a local currency is to function on a local scale the same way that national currencies have functioned on a national scale—building the local economy by maximizing circulation of trade within a defined region. Widely used in the early 1900s, local currencies are again being recognized as a tool for sustainable economic development. The currency distinguishes the local businesses that accept the currency from those that do not, building stronger relationships and a greater affinity between the business community and the citizens of a particular place.

The people who choose to use the currency make a conscious commitment to buy local first. They are taking personal responsibility for the health and well-being of their community by laying the foundation of a truly vibrant, thriving local economy.

The Berkshire approach includes a 10% on purchases made with the local currency. The example they provide on their site is that you pay $90 federal for $100 BerkShare. A merchant who accepts BerkShares will accept your $100 BerkShare for something that costs $100 federal. So this is a merchant based incentive to get residents to shop local. The theory is that the commitment to the discount will result in increased patronage.

The consumers who purchase BerkShares are also making a commitment to shop locally. They exchange their federal dollars for BerkShares, demonstrating their willingness to buy local goods and services.

Would this help Shiawassee? Maybe it would help communities like Durand and Perry … a local currency might be a nice incentive to get people to shop at their local area grocers instead of driving toward Flint, Lansing, Owosso, or Corunna.

Something to think about.