Ithaca Hours: Local Time-Based Currency in Action & Its Impact on Community Economy
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Summary:
Ithaca hours, introduced in 1991 as a local time-based currency in ithaca, new york, sought to boost the community’s economy by keeping transactions within the local framework. This article delves into the history, functioning, benefits, challenges, and the eventual decline of ithaca hours. exploring the impact on local businesses, the project’s uniqueness, and the broader context of local currencies, this comprehensive guide provides insights into the experiment that sparked community-driven economic initiatives.
Understanding ithaca hours
Founded in 1991 by activist Paul Glover, ithaca hours represented a unique experiment in local currency. The aim was clear: to stimulate the ithaca economy by fostering community-based transactions and reducing reliance on traditional currencies like the U.S. dollar. The currency, pegged at $10, effectively valued an hour of work, aligning with the local average hourly wage at the time.
Glover’s vision for ithaca hours was rooted in the desire to create a financial system that circumvented the pitfalls associated with the global economy. The hours project began with an injection of $110,000 into circulation, and by the end of 1991, approximately 20 local businesses pledged to accept this alternative currency. The movement gained momentum, with hundreds more businesses joining in as the currency circulated.
Participants in the ithaca hours system were not only part of a unique economic experiment but also received incentives. Listing in the hours directory came with a reward of two hours (equivalent to $20), encouraging businesses and individuals to actively engage in this local financial ecosystem.
The functioning of ithaca hours
At its core, ithaca hours operated as a time-based currency. Unlike traditional currencies backed by governments, ithaca hours were not government-backed, making their use entirely voluntary. One of the defining features was its locality constraint – ithaca hours could only be used within the city limits, promoting a closed-loop economic system.
The pegging of the currency at $10 per hour meant that any form of work, regardless of its nature or complexity, was valued equally. This approach aimed to create a more equitable economic landscape, where the worth of different types of work was standardized.
Despite the noble intentions and initial success, ithaca hours began facing challenges, including a decline in local interest and the departure of Paul Glover from ithaca. As electronic payment systems gained popularity, the use of hours steadily decreased, leading to its eventual phase-out in the 2010s.
Ithaca hours vs. other local currencies
The ithaca hours experiment inspired several communities across the United States and Canada to introduce their local currencies. Similar to ithaca hours, these currencies aimed to promote local business, limit currency movement to specific regions, and create a sense of economic self-sufficiency.
One notable example is the Calgary Dollar in Canada, established in 1995. Like ithaca hours, the calgary dollar is designed for use within the city, fostering local economic development. The proliferation of such local currencies signifies a shared vision among communities to prioritize localized economic sustainability.
Individuals and businesses in ithaca could take out zero-interest loans in ithaca hours, ranging from small amounts to substantial sums, providing a unique financial avenue for community members.
The fall of ithaca hours
Despite efforts to revive ithaca hours in 2019, the currency remained out of circulation. The success of the hours system was intricately tied to the evangelism of its founder, Paul Glover. His departure from ithaca and the emergence of electronic payment systems played pivotal roles in the declining use of hours in the early 2000s.
While local businesses, non-profit organizations, and individual residents attempted to resurrect the currency, no concrete details emerged on its revival. An organization named ithacash endeavored to introduce an internet-based local currency called ithaca dollars. However, as of the latest available information, the project faced challenges, and its online presence has not been updated since 2017.
The bottom line
ithaca hours, though an experimental currency in ithaca, new york, showcased the potential of community-driven economic initiatives. While the project faced challenges and ultimately phased out, it inspired other communities to explore localized currency systems. Local currencies like ithaca hours, though legal, are not recognized by federal and state governments, emphasizing the complexities and nuances of alternative economic models.
Frequently asked questions
How did ithaca hours impact local businesses?
ithaca hours aimed to promote local businesses by encouraging residents to spend within the community. This localized economic approach sought to strengthen community bonds and support neighborhood enterprises.
Why did ithaca hours decline?
The decline of ithaca hours can be attributed to factors such as a decrease in local interest, the departure of Paul Glover, and the rise of electronic payment systems. These challenges led to a steady decrease in the use of hours in the early 2000s, ultimately resulting in its phased-out status in the 2010s.
Were there efforts to revive ithaca hours?
Yes, in 2019, local businesses, non-profit organizations, and individual residents reportedly attempted to bring ithaca hours back into use. However, there are no specific details available regarding the success or timeline of these revival efforts.
What is the current status of ithaca hours?
As of the 2010s, ithaca hours are no longer accepted for goods or services in ithaca. Despite sporadic attempts to revive the currency, it remains out of circulation.
Key takeaways
- Ithaca hours, introduced in 1991, aimed to stimulate the ithaca economy through a unique local time-based currency.
- Valued at $10 per hour of work, the currency circulated over $110,000 before phasing out in the 2010s.
- Benefits included promoting local businesses, increasing the local minimum wage, and offering financial opportunities.
- Despite efforts to revive ithaca hours, it remains out of circulation as of the latest available information.
- Local currencies like ithaca hours, while legal, face challenges in wider recognition by government entities.
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