A determination to ‘move beyond anger to creativity’ is driving a strong barter economy in some places
In recent weeks, Theodoros Mavridis has bought fresh eggs, tsipourou (the local brandy: beware), fruit, olives, olive oil, jam, and soap. He has also had some legal advice, and enjoyed the services of an accountant to help fill in his tax return.
None of it has cost him a euro, because he had previously done a spot of electrical work – repairing a TV, sorting out a dodgy light – for some of the 800-odd members of a fast-growing exchange network in the port town of Volos, midway between Athens and Thessaloniki.
In return for his expert labour, Mavridis received a number of Local Alternative Units (known as tems in Greek) in his online network account. In return for the eggs, olive oil, tax advice and the rest, he transferred tems into other people’s accounts.Read the rest at Raw Story
Greece develops cashless, Euro-free currency in tight economy
by Jon Henley — The Guardian (UK)\
Not actually barter since it is not exchange of goods directly for goods, but rather involves using a local currency as a unit of account and medium of exchange.
This is also the way that barter clubs operate in the US. It actually starts in many clubs as debt-based money. The club extends credit in its unit of account to get the game going and to provide liquidity.
5 comments:
Given high unemployment, local currencies work quite well. The Austrian town of Worgl in the 1930s had a local currency that was a bit too successful: the authorities closed it down.
Ralph,
I can see that happening again here in the present Greece if in some way these transactions are taxable or otherwise lead to tax liabilities in Euro.
No indication in the article if these transactions are taxable events under Greek tax laws. If so, then I can see the Greek tax authorities shutting this down.
If they only had a reasonable poll tax (head tax) payable in Euro, then these folks could probably get that paid and still use their private system here with impunity.
Resp,
Let's see how long until ECB and Bank of Greece go and close down the shop, "people... must... be... slaved".
Matt,
Given the betrayal of the government & politicians these people have all the moral reasons to avoid paying taxes. But yes, I'm sure the state won't be fine with that.
However, is such the dislocation of society that probably all this can go (fortunately) unpunished for a while and if they close down shop other will rise.
Anon,
I hope this activity is untaxable in Greece because if so, right it's so bad there that this thing could really take off and be an edifying example...
resp,
During the Argentine crisis, local currencies worked very well - see Molly Scott Cato - Argentina in the Red: What can the UK’s Regional Economies Learn from the Argentinian Banking Crisis?
Quote:
Abstract:This paper explores the growth of community currencies in Argentina following the financial collapse of 2001 and draws lessons for local economies in developed economies. The paper begins with a brief profile of the Argentinian economy, which is seen to be highly sophisticated and successful. The reasons for the banking crisis of 2001 are then explained, focusing especially on monetarist IMF policies and their disastrous effect on the real economy of Argentina. Information is then given about the nature of the Red Global de Trueque (global barter network), its link to the ecological movement, and its development into a fully fledged system of alternative currencies following the monetary crisis. Problems facing the system as it expanded, and its relationship with local political authorities, and their own alternative currencies are described. Links are then drawn between the problems facing the Argentinian economy in 2001 and those facing many local economies in the UK facing long-term recession, particularly in terms of low levels of monetisation and the low value of the local multiplier. The paper concludes that a local economy with a functioning currency under its control is in a strong position to withstand potential crises in the functioning of the global economy.
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