Money is always social, global and virtual
Summary
The term “social money” suggests that some money, such as the form we are familiar with, is not social, even anti-social. With Mauss, I consider that money’s principal function, like that of the gift, is the extension of society, just as Simmel saw society’s potential for universality reflected in money. People have always made money personal and social by adapting it to their own special purposes, but this was in dialectical tension with its ability to reach the most inclusive levels of association. It is therefore mistaken for proponents of “Local Exchange Systems” (SEL) to imagine that the principles they wish to introduce are something new; and, by designing money as a closed local circuit, they have failed to harness money’s global potential. Too often, in unconscious mimicry of national currencies, these introverted initiatives stand alone and fail as a result. The movement to reform money needs to embrace the power of federation more wholeheartedly in future. This in turn requires us to engage with the virtual society opened up by the internet. Money’s ability to make social connection has been vastly expanded by the “network of networks” and those who wish to work for economic democracy cannot afford to turn their backs on these developments. Michael Linton, who founded LETS 25 years ago, is now pioneering this next phase — developing smart-card technology, new software and multiple domain naming systems as the means of sustaining money on an open source basis.
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