Social money

Social money is a concept of money under direct (as opposed to parliamentary) democratic control by people. Other terms are also complementary money. It's a currency that exists on a local level. The idea is to keep money under control of people and thus taking care of local economic development.

History of money

Bartering is an old and proven way to exchange goods and services. Many small scale communities used bartering, on top of systems such as gift economy. The process of bartering was also used a lot of exchanging gifts between communities.

Money came into place as a more prefered system as it was more scalable than exchanging goods themselves. It paved the way for a distributed form of administrating who owned what to who. As time passed by, the money system itself became more and centralized and controled by governments.

It is even said that money originated as a voucher, that people themselves created. The voucher would resemble the value of exchange and would give the future right to the holder to receive that good. It were the people themselves attributing the assumed value to money, and the people created the money by themselves.

Democratizing money

Social money is a way to bring the control of money back into the hands of the communities. Social money allows people to democratically control the supply of money and the rules of the game by which money plays, such as interest rates and inflation.

A group of people can establish a currency where all members can have influence on how the circulation of money is implemented. These days with cryptomoney such as bitcoin and blockchain, this process has become easier to implement.

Local money

Another term often used to refer to social money is local money, complementary currencies or community currencies. These days there exist many initiatives around the world that offer local money. They are often intended as a way to stimulate a more local circulation of money. As such you can prevent a local drain of wealth.

A local currency acts as a complementary currency to a national currency, rather than replacing it, and aims to encourage spending within a local community, especially with locally owned businesses.

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Everything evades for money

robino's picture
Submitted by robino on Sat, 01/06/2013 - 07:55

Money can do weird things to people. The power of money is fixed in people's heads and manipulates the heart. Love makes place for want of more and more. More money, more power, more nonsense.

It's a phenomenon that I've been used to for longer, but every time when confronted it's a slap in the face. And the slap is harder when the power gets closer, takes away a part of the love.

Money economy

The money economy is a form of economy in which transactions are done with money. Alternatives are possible, e.g. bartering, but money is the dominant factor for transactions between people. The money economy is a product of human society.

Money is impersonal and reduces qualitative values to a quantity (source)