Positive feedback loops
I believe the combination of Local Currency, Universe Resource Inheritance and Mutual Aid have many positive feedback loops when put together. A local currency distributed to everyone in the area promotes a financially aligned incentive a naturally occurring mutual aid effect via price appreciation/depreciation. Universe Resource Inheritance should help distribute the local currencies, as well as incentivizing the spending of them. Every dollar of fiat saved(retained in the area) increases potential spending power and velocity of money in that area increasing the tax revenue in that area as a by product.
why local currency?
“It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages.”
Adam smith
If your unfamiliar with local currency as a concept this video has some great footage
A local currency could subsize the spending power of a local area, not replacing the dollar but augmenting it. Assuming business have actual costs for the products they sell I view the birth of local currency more like a “coupon” where you might pay “half and half” dollars and local currency, the ratio likely being set by individual stores as they could afford. This can be a win win for the businesses as they gain repeat customers, and customers get to keep some of their dollars in their pockets to visit again tomorrow.
This has the added benefit of boosting the velocity of money on local spending, which means more tax revenue(as transactions in local currency would still have taxes to be paid by merchants). Bolstering local businesses will benefit the immediate area dramatically, and this will lead to more positive feedback.
Local currencies also would allow for a broad spectrum of investment / arbitrage opportunities when multiples of them are established. I believe the initial value of a local currency might be best bolstered with trading of pre-owned used physical items that the owner no longer wants but could be useful to others.
mutual aid?
http://bytemaster.github.io/update/2015/12/31/Mutual-Aid-Society/
I first heard of the term mutual aid, when reading threw dan larimers blogs, and decided to research it deeper which is how I came across Peter Kropotkin, I believe his quote below is an interesting introduction to mutual aid.
“...the fittest are not the physically strongest, nor the cunningest, but those who learn to combine so as mutually to support each other, strong and weak alike, for the welfare of the community.
The fittest are thus the most sociable animals, and sociability appears as the chief factor of evolution, both directly, by securing the well-being of the species while diminishing the waste of energy, and indirectly, by favouring the growth of intelligence.
Those species which willingly or unwillingly abandon it are doomed to decay; while those animals which know best how to combine, have the greatest chances of survival and of further evolution, although they may be inferior to others in each of the faculties enumerated by Darwin and Wallace, save the intellectual faculty.
...we maintain that under any circumstances sociability is the greatest advantage in the struggle for life.” (Peter Kropotkin 1902, n.p.)
I believe a local currency could empower the creation of a mutual aid society, as people would be more willing to part with their local currency then their fiat currency. It also ensures the mutual aid is geographic, and what benefits them somehow benefits you as well if in even a insignificant way. I believe this could help increase the quality of life for everyone.
One aspect of mutual aid I could see really being beneficial is the concept of utilizing local currency to help lift the burden of debt so many are under. People could exchange local currency from their URI distributions in exchange for cash to pay off some of their debt.
Community members could facilitate this for profit. And the entire area would profit from it long term. As less interest burden punishing purchasing power of those in debt weighs down the system, more spending(and tax revanue) should ensue.
Oh… and because its good for you.
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5504679/
Why URI?
https://medium.com/@bytemaster/universal-resource-inheritance-505e7ca4d048
I believe Universe Resource Inheritance has three main benefits, particularly in a new crypto currency. First off it helps solve “The distribution problem” desribed by dan larimer https://bytemaster.github.io/article/2016/02/09/The-Currency-Distribution-Problem/
Second is how it (should) bolster an incentive to invest or spend rather than hoarding money as well as “leveling” the playing field economically by “punishing old money” via inflation.
Third the inflation, will likely increase the velocity of the underlying.
