The Political Fray - Political Forum
Go Back   Political Fray > The Political Fray > Economics

Economics For discussion about economics, financial markets, investing, stock markets, finance, and economic theory


Thanks Tree3Thanks
Reply
 
LinkBack Thread Tools Display Modes
Old April 18th, 2016, 08:06 AM   #21
Secretary of State
 
tecoyah's Avatar
 
Joined: Oct 2012
From: Louisville, Ky
Posts: 4,801

The Ithica Hour is a similar attempt and has noted limited success which will not be duplicated on a larger scale.
"The Ithaca HOUR is a local currency used in Ithaca, New York and is the oldest and largest local currency system in the United States that is still operating.[1][not in citation given] It has inspired other similar systems in Madison, Wisconsin; Corvallis, Oregon;[2] and a proposed system in the Lehigh Valley, Pennsylvania.[3] One Ithaca HOUR is valued at US$10 and is generally recommended to be used as payment for one hour's work, although the rate is negotiable."
https://en.wikipedia.org/wiki/Ithaca_Hours

Cool Idea....that's about all it is.
tecoyah is online now  
Old April 18th, 2016, 08:17 AM   #22
Vice President
 
David's Avatar
 
Joined: Jul 2009
From: Opa Locka
Posts: 6,115

Quote:
Originally Posted by tecoyah View Post
The Ithica Hour is a similar attempt and has noted limited success which will not be duplicated on a larger scale.
"The Ithaca HOUR is a local currency used in Ithaca, New York and is the oldest and largest local currency system in the United States that is still operating.[1][not in citation given] It has inspired other similar systems in Madison, Wisconsin; Corvallis, Oregon;[2] and a proposed system in the Lehigh Valley, Pennsylvania.[3] One Ithaca HOUR is valued at US$10 and is generally recommended to be used as payment for one hour's work, although the rate is negotiable."
https://en.wikipedia.org/wiki/Ithaca_Hours

Cool Idea....that's about all it is.
But that's a fiat currency intended for internal use. I'm proposing a backed currency intended for general economic use. My example is akin in both intent and scale to the British Pound vs the Euro.
David is offline  
Old April 18th, 2016, 09:24 AM   #23
Secretary of State
 
tecoyah's Avatar
 
Joined: Oct 2012
From: Louisville, Ky
Posts: 4,801

Quote:
Originally Posted by David View Post
But that's a fiat currency intended for internal use. I'm proposing a backed currency intended for general economic use. My example is akin in both intent and scale to the British Pound vs the Euro.
As I have stated...therein lies the difficulty. General economic use would require general acceptance.
tecoyah is online now  
Old April 18th, 2016, 10:08 AM   #24
Vice President
 
David's Avatar
 
Joined: Jul 2009
From: Opa Locka
Posts: 6,115

Quote:
Originally Posted by tecoyah View Post
As I have stated...therein lies the difficulty. General economic use would require general acceptance.
Let's say BF holds assets worth $50B and issues 25B FPs. Every business in Florida would be exchanging their USDs for FPs to double their profits. This would slowly inflate FPs by putting more into circulation but worse case scenario USDs and FPs end up with a 1:1 exchange rate and now everyone is using (if not exclusively) FPs. Meanwhile Resident Card holders are getting a UBI without imposing a heavy tax burden. Eventually an equilibrium will be met with the UBI being funded via taxation rather than the introduction of new FPs but by this point the UBI is fully implemented and proven and the FP is a commonly used currency, ideally with a slight advantage over the USD.

Rinse and repeat 49 times and you have a national UBI without an unreasonable tax burden, every state has a contingency in the event of a recession inflating/deflating the USD and there's no need to try to force the issue thru the nonfunctional US Congress.
David is offline  
Old April 18th, 2016, 12:00 PM   #25
Secretary of State
 
tecoyah's Avatar
 
Joined: Oct 2012
From: Louisville, Ky
Posts: 4,801

If mermaid Unicorns bred with reptilian aliens they might create a new underwater snake race that develops perpetual motion and sends the excess energy to humans in exchange for sea cucumber sandwiches.
tecoyah is online now  
Old April 18th, 2016, 12:19 PM   #26
Vice President
 
David's Avatar
 
Joined: Jul 2009
From: Opa Locka
Posts: 6,115

Quote:
Originally Posted by tecoyah View Post
If mermaid Unicorns bred with reptilian aliens they might create a new underwater snake race that develops perpetual motion and sends the excess energy to humans in exchange for sea cucumber sandwiches.
So if you ran a small business that paid in USDs but your state had a currency with twice the buying power, you wouldn't go to a (free) state run currency exchange to turn your USDs into the state currency to put more money in your account? You don't expect, as this currency becomes more widespread by this effect, that your customers would start paying you in this currency to get what you were selling for a lower price? Even when things eventually balanced out, your state currency would be worth just as much as a USD and not subject to the machinations of the Fed and be somewhat insulated from economic downturns.

All the while, the people of your state get a low tax burden UBI reducing if not eliminating poverty, your state government gets to save money as it reduces welfare spending to match the UBI and the state is better able to handle the steady automation of the economy.
David is offline  
Old April 18th, 2016, 01:12 PM   #27
Secretary of State
 
tecoyah's Avatar
 
Joined: Oct 2012
From: Louisville, Ky
Posts: 4,801

Quote:
Originally Posted by David View Post
So if you ran a small business that paid in USDs but your state had a currency with twice the buying power, you wouldn't go to a (free) state run currency exchange to turn your USDs into the state currency to put more money in your account? You don't expect, as this currency becomes more widespread by this effect, that your customers would start paying you in this currency to get what you were selling for a lower price? Even when things eventually balanced out, your state currency would be worth just as much as a USD and not subject to the machinations of the Fed and be somewhat insulated from economic downturns.

All the while, the people of your state get a low tax burden UBI reducing if not eliminating poverty, your state government gets to save money as it reduces welfare spending to match the UBI and the state is better able to handle the steady automation of the economy.
If my employees wanted it, sure I would. However if I started the company and told people they will be paid in money they cannot use...I would have no employees or company.
Thanks from Aufgeblassen
tecoyah is online now  
Old April 18th, 2016, 01:20 PM   #28
President
 
Aufgeblassen's Avatar
 
Joined: Jul 2013
From: Central FL
Posts: 11,583

Quote:
Originally Posted by tecoyah View Post
If mermaid Unicorns bred with reptilian aliens they might create a new underwater snake race that develops perpetual motion and sends the excess energy to humans in exchange for sea cucumber sandwiches.
Aufgeblassen is online now  
Old April 18th, 2016, 03:38 PM   #29
Vice President
 
David's Avatar
 
Joined: Jul 2009
From: Opa Locka
Posts: 6,115

Quote:
Originally Posted by tecoyah View Post
If my employees wanted it, sure I would. However if I started the company and told people they will be paid in money they cannot use...I would have no employees or company.
Why wouldn't they be able to use it? It'd legal tender.
David is offline  
Old April 18th, 2016, 05:54 PM   #30
Secretary of State
 
tecoyah's Avatar
 
Joined: Oct 2012
From: Louisville, Ky
Posts: 4,801

Quote:
Originally Posted by David View Post
Why wouldn't they be able to use it? It'd legal tender.
Unless they need something from out of state....like pretty much everyone in the world.
tecoyah is online now  
Old April 18th, 2016, 07:27 PM   #31
Vice President
 
David's Avatar
 
Joined: Jul 2009
From: Opa Locka
Posts: 6,115

Quote:
Originally Posted by tecoyah View Post
Unless they need something from out of state....like pretty much everyone in the world.
Then they use USDs. This would be for internal economic use, not interstate or international and the bank would offer free currency exchange to USD.
David is offline  
Old April 19th, 2016, 04:37 AM   #32
Secretary of State
 
tecoyah's Avatar
 
Joined: Oct 2012
From: Louisville, Ky
Posts: 4,801

Quote:
Originally Posted by David View Post
Then they use USDs. This would be for internal economic use, not interstate or international and the bank would offer free currency exchange to USD.
Okay....then why bother spending the time, effort, and money to create a thing to duplicate something already in place and working well?

Especially considering how inconvenient it is in comparison.
tecoyah is online now  
Old April 19th, 2016, 05:05 AM   #33
Vice President
 
David's Avatar
 
Joined: Jul 2009
From: Opa Locka
Posts: 6,115

As I said, the intent is to finance a UBI with a limited tax burden. The wider economic use is simply the justification for the currency and is only a secondary purpose.
David is offline  
Old April 19th, 2016, 07:51 AM   #34
Secretary of State
 
tecoyah's Avatar
 
Joined: Oct 2012
From: Louisville, Ky
Posts: 4,801

Quote:
Originally Posted by David View Post
As I said, the intent is to finance a UBI with a limited tax burden. The wider economic use is simply the justification for the currency and is only a secondary purpose.
I see....so raise taxes to finance something of limited use to the population. How many individuals do you imagine would be using the new currency and for what percentage of their transactions? Divide this number by the entire population and note the disparity.

Now figure out how much they must pay to institute it and how you intend to convince them a new tax is a good idea.
tecoyah is online now  
Old April 19th, 2016, 08:12 AM   #35
President
 
Aufgeblassen's Avatar
 
Joined: Jul 2013
From: Central FL
Posts: 11,583

Socialism is great! Until they run out of other people's money, then not so much.
Aufgeblassen is online now  
Reply

  Political Fray > The Political Fray > Economics

Tags
currencies , independent , ubi



Thread Tools
Display Modes



Facebook Twitter RSS Feed



Copyright © 2009-2013 Political Fray. All rights reserved.