"Economic instability is on peoples' minds," said Gatch.
Now, even state governments are exploring the option. Lawmakers in more than 10 states, including Virginia, Georgia, South Carolina, Idaho and Tennessee, have been circulating proposals to introduce alternative currencies -- many of which would be issued in the form of gold or silver coins.
3 comments:
If somehow lawmakers in these states decided that it would be better to create their own currencies what effect do you think this would have on the unity of the US as a whole?
At first I was skeptical about local currencies because the physical currency would be in silver or gold, which can be uncomfortable and not easy to transport when in larger quantities. Then reading further, it makes sense that most of the transactions would be online. Though that eases my concerns a little, I still don't necessarily like the idea of local currencies. I feel it would just divide our country at a time when we should be coming together to fix our economic woes.
The proponents seem to have two distinct motives for the local currencies.
First, to reduce dependancy on US Dollars, a currency in which they see a potential for collapse. I do not quite understand how these currencies help here, since the local currencies are dependent on the value of the US Dollar. If the US Dollar collapses in value, these currencies will share the same fate. In addition, the local currencies seem to have an additional risk of obsoleteness due to their short lifespan, unclear purpose, and small user base.
Secondly, proponents seek to increase awareness of keeping money in local economies. This idea has grown in prominence recently, and, to some extent, might be beneficial to those communities. Nathan, first, lawmakers in states are not permitted to create state currencies besides bulky and inconvenient coins, which limits the scope of the local currencies. While the currencies may stall some national trade, it is unlikely that the difference will exceed the decrease (or, more likely, decline of percentage increase) of interstate trade beyond that of public interest in 'buy local' campaigns. In reality, the local currencies do not have the usefulness to consumers necessary to alter the unity of the US.
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