This document discusses designing a new economy. It acknowledges that the current economic system is unsustainable and in need of change. It suggests that we can actively design something new by starting with a shared vision and working together in an iterative process. Small, local efforts are already sprouting new solutions and building blocks that can help transition to a new economic system focused on sustainability and community well-being.
We can design the world we want. As Buckminster Fuller said:“You never change things by fighting the existing reality.You build a new model that makes the old one obsolete.” The core operating system that has to change for all else to change is how money is created and issued. Its going upstream and making a small change to the course of the river and watching the shift as it moves downstream.
We know the effects of the old design because the issues became so visible with the rise of the 99% movement. People don't have jobs, are losing homes, don't have healthcare, go in to debt for educations that don't lead to the future that was promised. The concentration of wealth is strangling people and the future of our society. -
Our fiat, debt-issued, interesting bearing monetary system concentrates wealth. That is what is was designed to do. It demands that money flow towards the place where it can get the highest rate of return and... make more money. We know this does not benefit the majority. We have an outdated and unfair system of resource distribution. That is the path that has led us to where we are.
We can design something else. No one who designed any previous system was an infallible genius. Those who were designing the system did it for their best interests. If WE decide that our best interests are a world where people can have adequate food, shelter, governance, education, Then WE can design that, just as a system was designed for us that had the opposite effect.
Money provides certain functions for society: -medium of exchange -unit of account -store of value And people have been putting together their own community currencies with certain building blocks for decades. -HOURS based units -mutual credit -various forms of issuance -negative interest rates to promote velocity And so on
You've probably participated in some of these yourself: -barter -time banks like Onion River Exchange or the Reach Care Bank -a local paper currency like Burlington Bread or Buffalo Mountain Hours The intentions of the builders and users were noble: -Build community -Increase Buying Local -Increase Purchasing Power -Share surplus -supplement incomes and so on
They were the pioneer species of our economic renaissance. Did they succeed? They raised consciousness, provided education, evolved ideas and practices. To measure success qualitatively...., YES quantitatively..., Not as much There are great stories of peoples being helped, communities that have been strengthened but creating the new world and new system we want still seems far away with these models.
The pioneer species have served their purpose We have a network and community of practice We're ready to start building systems of influence that will serve as a bridge and transition to the new when the old one become obsolete We're on the precipice of a new world of monetary possibilities. _______________________________________
Technology, evolving human consciousness and culture are making possible a rapid increase in the variation, scale, impact and imagination of monetary design. We are learning from a diversity of explorations, seeing more connections between them, and developing better quantitative measurements so we can see our impact.
UVM Alumni and former Oil Drum editor Nate Hagens had a quote that struck me “We're not facing a shortage of energy, we're facing a longage of expectations”. And I thought that idea of psychological resilience related to the future of money as well. The built world we see is the result of unbalanced concentration of wealth. And as we have new patterns of resource distribution, the world around us will literally change We can't save the old world with new money.
I want to see a world where our choices are not just based on unfair resource concentration. I'd like to see evolving culture, governance, and human consciousness work in creative harmony with the monetary designers of the future. And when our shared intentions evolve, the exchange structures we use to capitalize projects and trade resources will help ensure a balanced, livable society. (Optional: Like my favorite Paul Hawken quote: doing good will be as easy as falling off a log)
So What Do You Want To Build? What are the end results, the downstream effects of your intentions? -More locally owned businesses holistic healthcare options for all local and appropriate energy production a small scale manufacturing base -opportunities for young people that help them uniquely thrive ---our only limit is our creativity
If you're building new worlds, you're going to need new building blocks. Monetary architects of the future will use: Reputation metrics as access instead of money Reciprocity among independent exchange systems as a new means of trade transparent peer-produced standards to guide best practices and open source code development
The good news is, we're already doing it One Foundation is built. The VBSR Marketplace, a system I started and run, is a trade network serving all of Vermont to help build the new, resilient economy. It's a mutual credit engine with an innovation center that is collaborating with projects near and far to explore the future of exchange and resourcing.
We know that some of these new explorations will dead end, it's part of the creative process. We must structure these explorations as iterations so that we can refine and look for the best outcomes. The best learning will come from doing, and we're going to need a lot of people with good amounts of courage to navigate these uncharted waters.
We will create exchange systems that can be upgraded or migrated as culture or societal needs evolve. we'll have to be agile. We'll have to set appropriate expectations and ways to safeguard our new stored value. The major shift is this: There isn't ONE solution. There will be many solutions working together and constantly evolving.
Now, our financial literacy focuses on basic skills for our one current monoculture money system. In the future, it will be how to manage your reputation, how to negotiate using multiple forms of payment, how to manage a portfolio of many types of resources with varying degrees of liquidity and redeemability. Your financial literacy in the future will focus on access rather than accumulation.
How can you be a part of this new economy? Support new systems by participating in them. Put some of your old economy resources into new economy exchange systems. Help the people who are building. They may be having trouble paying the rent because it's not a part of the new economy yet. They are sailing for the far shore. Find them and make sure they don't get lost in the storm in between.
The old economy is failing but for many it is comfortable. To build the new economy, we need enough people to make an active choice to participate in it. That's what makes the old one obsolete. Some things you can do today: Barter with your neighbors Join a trade community like VBSR Marketplace or Onion River Exchange Read more about this new money systems or participate in a community or online discussion group.
Lily tomlin said, I used to wonder why somebody didn't do something about that, then I realized I was somebody. It's time to take all the individual stories, ideas, and seedlings and connect them in a way that creates momentum towards building a more humane and resilient world. This is your invitation to join us. Thank you.
