http://theplenty.org/plenty-exchange-rate-moves-to-1p1-today Piedmont Local EcoNomy Tender Fri, 12 Mar 2010 03:00:17 -0500 http://wordpress.org/?v=2.8.4 hourly 1 http://theplenty.org/plenty-exchange-rate-moves-to-1p1-today/comment-page-1#comment-8476 Drew Fri, 12 Mar 2010 03:00:17 +0000 http://theplenty.org/?p=566#comment-8476 What I don't entirely understand is why the PLENTY is necessary for accomplishing the objectives it is supposed to help achieve. Couldn't many of these objectives simply be accomplished without the additional transaction costs that are inherent in producing a local currency? After all, publicity campaigns and social pressure should be quite useful tools to promote a 'buy local' initiative. As for the PLENTY's environmental goals, the program breaks down into internal incoherence. Because of the 1:1 exchange rate, the same number of dollars will be produced and circulated by the Fed regardless of whether or not the PLENTY is in circulation. As a result, the production of the PLENTY, in fact, will contribute more carbon emissions, effluent, and other forms of pollution to the environment. Finally, doesn't using the PLENTY actually put local business at a distinct disadvantage? Those who choose to use the currency will have to incur additional transaction costs in order to transact in both the PLENTY and traditional Federal Reserve note economies. What I don’t entirely understand is why the PLENTY is necessary for accomplishing the objectives it is supposed to help achieve. Couldn’t many of these objectives simply be accomplished without the additional transaction costs that are inherent in producing a local currency? After all, publicity campaigns and social pressure should be quite useful tools to promote a ‘buy local’ initiative. As for the PLENTY’s environmental goals, the program breaks down into internal incoherence. Because of the 1:1 exchange rate, the same number of dollars will be produced and circulated by the Fed regardless of whether or not the PLENTY is in circulation. As a result, the production of the PLENTY, in fact, will contribute more carbon emissions, effluent, and other forms of pollution to the environment. Finally, doesn’t using the PLENTY actually put local business at a distinct disadvantage? Those who choose to use the currency will have to incur additional transaction costs in order to transact in both the PLENTY and traditional Federal Reserve note economies.

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