Let’s Get Real About System Change

1. Let’s 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 TD’s 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 what’s 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. Market’s Creeping ColonizationOf the Core Economy

9. How to Push Back Against The Market’s Colonization of the Core Economy? The Three “E’s” 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 Exchanges:Step 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 Exchanges:Neighbor-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