Local Community Currency to Support Local Business

I recently read an article in Time Magazine that mentioned many small towns issuing their own currency to encourage spending at local businesses. Citizens, in some instances, can buy this currency at their local bank and get more dollars in local currency for their US dollars (ex: bring in $100 USD and get $105 in local currency). This discount is funded by local businesses to promote their business.

As the U.S. suffers through its worst economic contraction since the Great Depression, buying local currency is one major way consumers can help keep jobs in their community. Small businesses employ the majority of most Americans. As such, consumers that spend at local small businesses help their community immensely in terms of employment. It also keeps money spent in the local economy versus buying from major nationwide chains.

The local currency program has been most successful in small towns in New England. Chambers of Commerce nationwide should embrace this local currency idea as a way to help their small businesses to survive the current recession. It is a well-known fact that small businesses pump much more money into the community per capita than larger corporate national retailers. Maybe this is something that communities and small businesses like ours should think about.