Lets Get Real About System Change

1
Lets Get RealAbout System Change
2

• Time Dollars
• The Core Economy
• in the Context of Market and System

3
Time Dollars as a Complementary Currency and Its
Potential for System Change

• Claim TDs 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

4
Three 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

5
Characteristics of Market

• Positive feed-back loops
• Interest
• Price rewards whats 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

6
Characteristics of The Public Purpose 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)

7
Characteristics of The 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

8
Markets Creeping ColonizationOf the Core Economy
9
How to Push Back Against The Markets
Colonization of the Core Economy?

• The Three Es 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

10
Public Purpose EconomyPushing Back? Or
Transmitting?
11
Time Dollars at Intersection of Core, Market, and
Public Purpose Economies
12
Can Time Dollars Help Strengthen the Core 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

13
Time Dollars Four Core Values

• Assets/ Equality
• Everyone has something to
• contribute
• Redefinition of Work
• Building home, family and
• community is real work
• Reciprocity
• Two-way giving is more powerful
• than one-way giving
• Social Capital
• No person is an island we are
• Each members of community

14
Creating a Typology of Time Dollar Exchanges
Step One Types of Transations

• Generalized Transactions
• Anyone can earn
• Anyone who earns can spend
• Neighbor-to-Neighbor
• Specialized Transactions
• Targeted populations/groups
• Earning and Spending for Specific
  Purpose/Outcome
• Peer Tutoring, Youth Court

15
Creating a Typology of Time Dollar
ExchangesStep 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

16
Typology of Time Dollar ExchangesStep 3 A Time
Dollar Matrix By Economic Domains and Types of
Transactions
17
Time Dollar ExchangesNeighbor-to-Neighbor vs
Specialized
18
Neighbor-to-Neighbor (Organic)in Relation to
Specialized (Structured)
19

• Claim
• Organic and Structured Time Dollars Working
  Together and located at the intersections of
  the Market and Public Purpose Economies create
  new possibilities for systems change

20
Organic Time Dollars System Change

• Anyone can join and earn anyone who earns can
  spend
• Individuals in the community
• Non-profits agencies
• Businesses
• Examples
• Community Exchange
• Portland Maine
• Potential Four core values expressed
  organically
• Challenge How to secure support for brokering
  role

21
Structured Time Dollars for System Change

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

22
Time Dollars in Relation to Market Reinforcing
The Core Economy through organic/structured
forms
23
What System Change Means with Time Dollars

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

24
Summation

• 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