Labor notes (currency)
Encyclopedia
Labor notes are an alternative currency
based on exchange of hours of labor.
Two early attempts at implementing labor notes were made by social reformers Josiah Warren and Robert Owen following their experiences attempting to establish a utopian community at New Harmony, Indiana
, in which currency was prohibited:
In 1827, Josiah Warren
established the Cincinnati Time Store
where goods could be purchased with labor notes representing an agreement to perform labor. He folded the store in 1830 in order to devote his effort to establishing communities that implemented his principles of labor-based prices.
Beginning in 1832, Robert Owen
and his followers attempted to implement labor notes in London and Glascow by establishing marketplaces and banks that accepted them. Their efforts failed in 1834.
During the Great Depression
, European communities implemented local currencies with varying success. More modern implementations as time-based currencies
were implemented in the United States starting in the 1970s.
Alternative currency
Alternative currency is a term that refers to any currency used as an alternative to the dominant national or multinational currency systems...
based on exchange of hours of labor.
Two early attempts at implementing labor notes were made by social reformers Josiah Warren and Robert Owen following their experiences attempting to establish a utopian community at New Harmony, Indiana
New Harmony, Indiana
New Harmony is a historic town on the Wabash River in Harmony Township, Posey County, Indiana, United States. It lies north of Mount Vernon, the county seat. The population was 916 at the 2000 census. It is part of the Evansville metropolitan area. Many of the old Harmonist buildings still stand...
, in which currency was prohibited:
In 1827, Josiah Warren
Josiah Warren
Josiah Warren was an individualist anarchist, inventor, musician, and author in the United States. He is widely regarded as the first American anarchist, and the four-page weekly paper he edited during 1833, The Peaceful Revolutionist, was the first anarchist periodical published, an enterprise...
established the Cincinnati Time Store
Cincinnati Time Store
The Cincinnati Time Store was a successful retail store that was created by American individualist anarchist Josiah Warren to test his theories that were based on his strict interpretation of the labor theory of value. The experimental store operated from May 18, 1827 until May 1830...
where goods could be purchased with labor notes representing an agreement to perform labor. He folded the store in 1830 in order to devote his effort to establishing communities that implemented his principles of labor-based prices.
Beginning in 1832, Robert Owen
Robert Owen
Robert Owen was a Welsh social reformer and one of the founders of utopian socialism and the cooperative movement.Owen's philosophy was based on three intellectual pillars:...
and his followers attempted to implement labor notes in London and Glascow by establishing marketplaces and banks that accepted them. Their efforts failed in 1834.
During the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
, European communities implemented local currencies with varying success. More modern implementations as time-based currencies
Time-based currency
In economics, a time-based currency is an alternative currency where the unit of exchange is the man-hour.Some time-based currencies value everyone’s contributions equally. One hour equals one service credit...
were implemented in the United States starting in the 1970s.
See also
- Local currencyLocal currencyIn economics, a local currency, in its common usage, is a currency not backed by a national government , and intended to trade only in a small area. As a tool of fiscal localism, local moneys can raise awareness of the state of the local economy, especially among those who may be unfamiliar or...
- Cincinnati Time StoreCincinnati Time StoreThe Cincinnati Time Store was a successful retail store that was created by American individualist anarchist Josiah Warren to test his theories that were based on his strict interpretation of the labor theory of value. The experimental store operated from May 18, 1827 until May 1830...
- Local Exchange Trading System, a labor/for/labor barter system, which may not include actual currency notes/script
- Ithaca HoursIthaca HoursThe Ithaca HOUR is a local currency used in Ithaca, New York and is the oldest and largest local currency system in the United States that is still operating. It has inspired other similar systems in Madison, Wisconsin; Corvallis, Oregon; and a proposed system in the Lehigh Valley, Pennsylvania...
, a successful experiment with a community currency