Let’s Get RealLet’s Get RealAbout System ChangeAbout System Change

Time Dollars & Time Dollars & The Core Economy The Core Economy

in the Context of Market and Systemin the Context of Market and System

Time Dollars as a Complementary Currency and Time Dollars as a Complementary Currency and Its Potential for System ChangeIts Potential for System Change

• Claim TD’s biggest “weakness,” the Rejection of price and interest, is its most important strength for opening up a new economic space of possibilities in a world increasingly driven by “systems”

– Elements of argument:• Time Dollars is located within 3 different kinds of economy

– and, even more importantly, is located at the boundaries between those economies

• Each of the three has its own characteristic feedback loop • Nature of the feedback loop with TDs is key to creating

new possibilities for interface between the three economies, that is, fundamental change

• Change must occur subsystem by subsystem

Three Kinds of EconomyThree Kinds of Economy

• Core Economy• Home, Neighborhood, Community – organic, not “systematized”• Production based on interdependence• Distribution principle: need, family status

• Market Economy• Market, for-profit organizations, banks – highly systematized• Production principle: specialization• Distribution principle: price

• Public Purpose Economy• Government, non-profits – increasingly systematized• Production principle: specialization• Distribution principles: public interest

Characteristics of MarketCharacteristics of Market

• Positive feed-back loops » Interest» Price – rewards what’s scarce: specialization

• Impact of information age » Money as fuel and engine for market» Information technology = high octane additives» What price and information both drive: formation of

systems that increase effectiveness of feedback loops

• Ultimately – feedback loop is about MORE

Characteristics of The Public Characteristics of The Public Purpose EconomyPurpose Economy

• Fuel for this economy: » Votes» Money

• Feedback loop is complex – both +ve and -ve» Votes – the stop/go of politics» Money – buys votes» Access – political influence related to money» Systems – confirmatory data/outcomes

• Ultimately, feedback loop is about » Political Interests » More (as related to money)

Characteristics of Characteristics of The Core EconomyThe Core Economy

• Fuel for this economy: » Relationships» Some money

• Feedback loops depend on:» Psychological rewards/punishment» Some money» “Systems” which are small/restricted/”organic”

• Ultimately, functional feedback loop is about » Stability» Security» Happiness

Market’s Creeping ColonizationMarket’s Creeping ColonizationOf the Core EconomyOf the Core Economy

Market

Market

Core

Core

Systems

Systems

Systems

Systems

Systems

Systems

19th Century

20th Century

21th Century

MarketCore

How to Push Back Against The How to Push Back Against The Market’s Colonization of the Core Economy?Market’s Colonization of the Core Economy?

The Three “E’s” of Market Dysfunctionality:• Externalities

» Environmental» Social: rich and poor alike» Isolation » Inequality

• Exclusions» Elderly» Fragile» Unskilled

• Excess» 400,000 Americans every year dying from obesity

Public Purpose EconomyPublic Purpose EconomyPushing Back? Or Transmitting?Pushing Back? Or Transmitting?

Systems

Systems

Systems

Systems

Systems

Systems

Core

Market

Systems

Market

Systems

Market

Systems

Public Purpose

Time Dollars at Intersection of Core, Market, and Time Dollars at Intersection of Core, Market, and Public Purpose EconomiesPublic Purpose Economies

Systems

Systems

Systems

Systems

Systems

Core

Market

Public Purpose Market

Market

Systems

Systems

Systems

Time Dollars

Systems

Can Time Dollars Help Strengthen the Core Can Time Dollars Help Strengthen the Core Economy?Economy?

Characteristics of Time Dollars:• 1 hour contribution =1 Time

Dollar• No price or interest• Feedback loop =

Psychological reward of “the gift”

• Ultimately – feedback loop is about

» Relationship

» Self-Esteem

» Heart Space

Time Dollars Time Dollars Four Core ValuesFour Core Values

• Assets/ Equality Everyone has something to

contribute

• Redefinition of WorkBuilding home, family and

community is real work

• Reciprocity Two-way giving is more powerful

than one-way giving

• Social CapitalNo person is an island – we are

Each members of community

Creating a Typology of Time Dollar Creating a Typology of Time Dollar Exchanges – Step One: Types of Exchanges – Step One: Types of

TransationsTransations• Generalized Transactions

» Anyone can earn» Anyone who earns can spend» Neighbor-to-Neighbor Neighbor-to-Neighbor

• Specialized Transactions» Targeted populations/groups» Earning and Spending for Specific Purpose/Outcome» Peer Tutoring, Youth CourtPeer Tutoring, Youth Court

Creating a Typology of Time Dollar Exchanges:Creating a Typology of Time Dollar Exchanges:Step 2: Economic Domains and TransactionTypesStep 2: Economic Domains and TransactionTypes

• Economic Domains Where Time Dollars Operate» Core Economy

» Public Purpose Economy

• Two main Types of Time Dollar transactions» Generalized

» Targeted/Specialized

Typology of Time Dollar ExchangesTypology of Time Dollar ExchangesStep 3: A Time Dollar Matrix By Economic Domains Step 3: A Time Dollar Matrix By Economic Domains

and Types of Transactionsand Types of Transactions

GE

NE

RA

LIZ

ED

TA

RG

ET

ED

/S

PE

CIA

LIZ

ED

CORE PUBLIC PURPOSE

Cross- Age Peer TutoringYouth CourtParenting Skills

Neighbor- to- NeighborNeighbor- to- Neighbor for:Elder Care Families of At- Risk Youth

Neighbor- to- NeighborCommunity Initiatives: Transportation

Time Dollar Exchanges:Time Dollar Exchanges:Neighbor-to-Neighbor vs Specialized Neighbor-to-Neighbor vs Specialized

CORE PUBLIC PURPOSE

Cross- Age Peer TutoringYouth CourtParenting Skills

Neighbor- to- Neighbor

Neighbor- to- NeighborCommunity I nitiatives: Transportation

Neighbor- to- Neighbor for:Elder Care Families of At- Risk Youth

Neighbor-to-Neighbor (Organic)Neighbor-to-Neighbor (Organic)in Relation to Specialized (Structured)in Relation to Specialized (Structured)

CORE PUBLIC PURPOSE

Neighbor- to- NeighborNeighbor- to- Neighbor for:Elder Care Families of At- Risk Youth

Neighbor- to- NeighborCommunity Initiatives: Transportation

Cross- Age Peer TutoringYouth CourtParenting Skills

Claim: Claim:

““Organic” and “Structured” Time Dollars Organic” and “Structured” Time Dollars Working Together – and located at the Working Together – and located at the intersections of the Market and Public intersections of the Market and Public Purpose Economies – create new Purpose Economies – create new possibilities for systems changepossibilities for systems change

““Organic” Time Dollars & System ChangeOrganic” Time Dollars & System Change

• Anyone can join and earn – anyone who earns can spend:

» Individuals in the community

» Non-profits & agencies

» Businesses

» Examples:

Community ExchangeCommunity Exchange

Portland MainePortland Maine

Potential: Four core values expressed organicallyPotential: Four core values expressed organically

Challenge: How to secure support for brokering roleChallenge: How to secure support for brokering role

““Structured” Time Dollars for System Structured” Time Dollars for System ChangeChange

• Members of specific groups can earn• Contribute to mission• Time Dollars are cashed in for “rewards”:

» services

» goods

» possibilities

• Resources provided by Public Purpose and Market Economies» Examples: Youth Court, Cross AgeYouth Court, Cross Age

• Potential: Principles Expressed by Design • Challenge: Going against “the systems” as they now exist• Danger: Can be used in manipulative/coercive way

Time Dollars in Relation to Market: Time Dollars in Relation to Market: Reinforcing The Core Economy through Reinforcing The Core Economy through

organic/structured forms organic/structured forms

Systems

Systems

Systems

Systems

Systems

Core

Market

Public Purpose Market

Market

Systems

Systems

Systems

Time Dollars

Systems

What System Change Means with What System Change Means with Time DollarsTime Dollars

• A change in:» Producers» Product» Process» Cost

SummationSummation

Time Dollars have opened up opportunity space• Neighbor to Neighbor plus Specialized together

have forged a new kind of linking of the core, market, public purpose economies

• How come?: – Positioned at the “boundaries” between economic

domains– Nature of feedback loop = substantive– Limitations of the currency force innovative/creative

approach to structure/systems to reinforce the Core Economy and allow for “pushing back” against the systems of the Market and Public Purpose Economies in creative and constructive ways