Saturday, March 13, 2010

Local Economies

It should be more than apparent to anyone that large global economies do not work. For alot of us, this fact has slapped you in the face. As the current economic crisis worsens (regardless of what the main stream media says), maybe taking a step back in time will work. Back in the old days economies were local and easier to manage. It consisted of friends, families, and neighbors. One man would grow a crop of tomatoes, another a crop of butterbeans. They would each put up what their family needed and have an excess. Then they would exchange with each other. Now both had tomatoes and butterbeans. After that they would go to their neighbors and swap for more items.
This doesn't have to be limited to crops. It can work for just about anything, clothes, furniture, or any type of good. It will also work for services. Let's say I have a particular skill such as auto mechanic. Your truck needs to be worked on, you bring it to me and I fix it. Later I need help with putting a new roof on my house, I come to you because that is one of your skills. You come over and help fix my roof. This is a tried and true method called swapping work. I help you, you help me, we help our neighbors. This is what they used to do when our grandparents or great grandparents were making a living.
There will still be a need for some hard currency, such as silver and gold, but the need will be much less and only when you need to go outside of the local economy for something. I do say silver and gold because the current currency isn't worth the paper it is printed on, but that is for another discussion.
Think about this, you will see the wisdom in it.

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