Time-based currency

In economics, a time-based currency is an alternative currency where the unit of exchange is the man-hour.

Some time-based currencies value everyone’s contributions equally. One hour equals one service credit. In these systems, one person volunteers to work for an hour for another person; thus, they are credited with one hour, which they can redeem for an hour of service from another volunteer. Critics charge this would lead to fewer doctors or dentists. Other systems, such as Ithaca Hours, let doctors and dentists charge more hours per hour.

Time Dollars

Main article: Time Banking

Time Dollars are created via mutual credit: Each transaction is recorded as a corresponding credit and debit in the accounts of the participants. In a Time Dollars system, or Time Bank, each participant's time is valued equally, whether he/she is a novice or an extensively trained expert. Time Dollars thus recognize and encourage reciprocal community service, resist inflation without encouraging hoarding, and are in sufficient supply, which enables trade and cooperation among participants. It has been implemented in a wide variety of settings – rural Appalachia, urban St. Louis, in Youth Court, and in retirement communities, to name a few.^{[citation needed]}

Time banks

Edgar Cahn came up with Time Dollars as "a new currency to provide a solution to massive cuts in government spending on social welfare. If there was not going to be enough of the old money to fix all the problems facing our country and our society", Edgar argued, "Why not make a new kind of money to pay people for what needs to be done? Time Dollars value everyone’s contributions equally. One hour equals one service credit."^{[citation needed]} Cahn wrote two books, Our Brother’s Keeper and No More Throw-Away People.

The concept has had several historical antecedents, the most notable of which was the National Equitable Labour Exchange, which was founded in London, England in 1832 by Welsh socialist and labor reformer Robert Owen, and spread to several branches, most notably Birmingham, England before folding in 1834. This exchange issued "Labour Notes" similar to banknotes, denominated in units of 1, 2, 5, 10, 20, 40 and 80 hours. John Gray, a socialist economist, worked with Owen, and later with Ricardian Socialists and postulated a National Chamber of Commerce as a central bank issuing a labour currency. In 1848, socialist and the first person to call himself an anarchist, Pierre-Joseph Proudhon postulated a system of time chits. In 1875, Karl Marx wrote of "Labor Certificates" (Arbeitszertifikaten) in his Critique of the Gotha Program of a "certificate from society that [the labourer] has furnished such and such an amount of labour", which can be used to draw "from the social stock of means of consumption as much as costs the same amount of labour." .

The largest and most active Time Bank in the United States is the Dane County TimeBank in Madison, Wisconsin with over 1,000 members, a Youth Court and connections to Community Supported Agriculture. The Dane County TimeBank co-hosted "TimeBanking in Action," the TimeBanking International Conference in 2007, and will be co-hosting the TimeBanking Conference, "Time For Justice, A Wealth of Opportunity" in June 2009. TimeBanks USA is the hub of a nationwide network of TimeBanks offering training and support to timebanks around the country. It developed Community Weaver software now widely used with over 11,000 participants. In the US there are now 101 TimeBanks listed on http://community.timebanks.org/findtimebanks.php. TimeBanking has spread to over 37 nations and six continents. In England, Scotland, Wales and Ireland, TimeBanking has spread rapidly. In Wales there has been a particular focus on the development of 'Agency Timebanks' to engage local people as contributors to public service and community Agency Timebanking in Wales There are 116 in operation and another 87 under development; the government and national volunteer organizations have been particularly supportive. They are promoted as a tool in community regeneration.

Criticisms

Some criticisms of Time Banking have focused on the Time Dollar's inadequacies as a form of currency and as a market information mechanism. Frank Fisher of MIT predicted in the 80s that such a currency "would lead to the kind of distortion of market forces which had crippled Russia's economy." To this day, Time Banks in the U.S. must avoid setting any monetary worth on their Time Dollars, lest it become taxable income to the IRS.

Dr. Gill Seyfang's study of the Gorbals Time Bank—one of the few studies of Time Banking done by the academic community—listed several other non-theoretical problems with Time Banking. The first is the difficulty of communicating to potential members exactly what makes Time Banking different, or "getting people to understand the difference between Time Banking and traditional volunteering." She also notes that there is no guarantee that every person's needs will be provided for by a Time Bank by dint of the fact that the supply of certain skills may be lacking in a community.

One of the most stringent criticisms of Time Banking is its organizational sustainability. While some member-run Time Banks with relatively low overhead costs do exist, others pay a staff to keep the organization running. This can be quite expensive for smaller organizations and without a long-term source of funding, they may fold.

In fiction

The 2011 film In Time, directed by Andrew Niccol, made use of a fictional time-based currency, tied to the regulated, initially 25-year lifespans of the characters in the film.

See also

• Anarchy
• Cincinnati Time Store
• Community currency
• Collaborative finance
• Coproduction of public services by service users and communities
• Fiscal localism
• Fourth Corner Exchange
• Ithaca Hours
• LETS
• Labour-time voucher
• List of economics topics
• Mutualism
• Ripple monetary system
• Time Banking
• Ven (currency)

External links

• Adding simple and effective trust measurements to F2F P2P networks is a paper about using a Time-based currency for trust in F2F P2P computer networks.
• Kroonos.com Time currency project, created in Spain with multilanguage support.
• Crom Alternative Exchange Association
• Kingdom of Time Currency Gallery
• [1] Agency Time Credits in Wales
• [2] NYC community timebank
• 65hours Time banking site - making time banking available to everyone