Vision for a Prosperous City

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Together, we can create a city where anyone who wants work can trade their skills, knowledge, talent, and services for a local currency, prosperity is accessible to everyone, and poverty is ended (currently 19% in Fairfield).

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Purpose of Production

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The purpose of production is consumption. When we compare America the manufacturer with America the shopper we find that the manufacturer can produce but the shopper cannot buy. Our trouble is not over-production but under-consumption, which results from a chronic shortage of buying-power. At any given moment the amount of money in our pockets is insufficient to buy the total output of in­dustry.

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Why Can't the Shopper Buy?

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​If suppliers, manufacturers, and farmers have goods and services that go unsold because there is insufficient money in circulation, both suppliers and consumers suffer. The economic system should deliver goods and services as needed for consumption.

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Bernard Lietaer, designer of the European currency, said: "We can produce more than enough food to feed everybody, and there is definitely enough work for everybody in the world, but there is clearly not enough money to pay for it all. The scarcity is in our national currencies. In fact, the job of central banks is to create and maintain that currency scarcity. ..." Beyond Greed and Scarcity

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​​The Remedy: Increase the Currency

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People thrive through the exchange of their skills and services. The abundant FairFunds currency will reemploy idle individuals, allowing them to trade their skills, knowledge, and services, for tangible currency. Scarce dollars will be hoarded for necessities; abundant FairFunds will look for places to be spent - people will trade their skills, knowledge, and services for it. Producers will have no shortage of customers, and anyone who wishes to work will have the opportunity to do so. This approach aims to eliminate poverty in Fairfield. ​

 

​​Consider a shopping mall stuffed with goods, but there are not enough customers with money to buy the goods. With insufficient money, suppliers can’t sell their goods, and customers can’t buy them – they both lose out.

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The solution is to increase the money supply to consume the goods and satisfy the consumer’s demand. 

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How the Currency Works

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Bernard Lietaer also explained that the time from 1150 to 1250 was a time of extraordinary developments, a period of economic prosperity such as we have difficulty imagining nowadays. He said it was the result of the currency in use. Every 6 years or so the king would recall the coin and give 3 pennies for every 4 taken in, a 25% tax by re-coinage which replaced normal taxes. When you knew that the king was going to take 25% of your coin sooner or later, you were not going to hold on to it, you spent it. It circulated like a hot potato many times faster than normal, and it created a huge amount of economic activity, the cause of the Renaissance.

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Now that we know the cause of the Renaissance, we can duplicate it.

​​​​FairFunds functions as a stamp-scrip, as explained by Irving Fisher in his book Stamp Scrip. At the end of each quarter users must purchase and attach a stamp to each scrip to renew it. This process pays for the scrip, increases circulation, and prevents hoarding to make the currency effective. A well known example in use today is the Chiemgauer.

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FairFunds will look something like this:

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The stamp can be purchased from any non-profit selling stamps, costing 2% of the face value of the scrip (paid in dollars). This pays for the scrip. Scrip will be available in denominations of 1, 5, 10, and 20. Between the first of each quarter, using the scrip incurs no additional cost. A redemption fund will allow scrip to be redeemed for dollars at a cost of 5%.

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​It is recommended that sellers accept at least 20% of a sale in scrip, with the rest in dollars. ​​​​

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For more details, see How to Use.

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Some Possible Applications

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1. The Renaissance Store: We can open a store (the “Renaissance Store” or "FairFunds Store") similar to the Good Will store where donations, old items, art, and collectibles are sold for Currency. This will give additional value to the Currency, and fund the currency management.

2. Local Farmers: When farmers accept a portion of FairFunds for their crops, people will buy from them instead of buying at local markets. It promotes Buy Fairfield First. It will provide an outlet to spend FairFunds. Farmers can convert any excess FairFunds they can't spend, into dollars for 5%.

3. Volunteers: FairFunds can be used to pay volunteers to do community service; e.g., teach elders computer skills, teach youth special knowledge, e.g. civics, law, engineering, grow food, pay kids to clean up trash on the streets etc. Those projects that would not fit in the city’s budget, can now fit with the FairFunds.

4. Support of Charities: Non-profits can buy 100 FairFunds at the price of $97, and sell them to their members for $100 earning $3 per 100 FairFunds that they sell. Consumers can buy FairFunds from the non-profit they want to support, and then buy goods from local merchants, thereby supporting the non-profit. Local businesses can accept FairFunds as equivalent to dollars, and spend them to buy groceries from other businesses, or convert into dollars at a cost of 5%. This will improve the businesses' image by supporting community activities, and increasing their turnover.

5. Home and Car Maintenance: The numerous worn out houses and cars in need of maintenance can be repaired by skilled workers willing to accept payment in FairFunds. This will increase house property values.​