KW LETS Grows to 100 Members

By Suzanne Galloway

Published June 1996

Money is essentially a promise that value will be given, and a way to measure trade. Yet we have become so depend­ent on the monetary economy, that without cash, trade doesn’t happen-and people don’t get the things they need. Since trading of goods and services de­pends on us having a reliable supply of cash, we are dependent on corporations and governments for jobs and subsidies — we are held hostage by green pieces of paper and those who control its flow.

“The problem with the economy is not supply and demand. There is supply. And there is demand. There is work that needs to be done. What’s missing is the grease, the money,” says Rev. Lind­say King, a founder of the Toronto Local Employment and Trading System.

In spite of the lack of jobs and cuts to social programs, we still have re­sources and skills within our community. There is a way that people in the com­munity can make use of their skills and gain control of their future. The Kitch­ener Waterloo Local Employment and Trading System (LETS) is a community response to a stagnant economy and an irresponsible government. It provides an alternative to the cash economy of high-unemployment, under-employ­ment, and cutbacks.

LETS is an association of individu­als, businesses and community organiza­tions that enables its members to ex­change goods and services with each other, ranging from construction, to graphic design, bicycle repair, childcare, and a night at the movies. The list con­tinues to grow. LETS is slowly becoming a bubbling mini-economy in the K-W region, with over 100 members and ap­proximately $3200 worth of trading since last October (see list of serv­ices/goods below).

LETSystems use a local currency to stimulate economic activity despite a shortage of cash in the community. The notion of a local currency is not new -many communities in Australia, New Zealand and Austria issued their own local currencies during the Great Depression and thrived while others starved.

The use of a local currency enables non-direct trading. Members can sell their services to one member and buy services from another, usually with a combination of cash and Green dollars (the local currency, basically points on a computer system). Since Green dollars can only be spent with other LETS mem­bers, the benefits of this economic activ­ity stay within the community. This new, improved form of barter is neither complex nor radical, but it can have a sizable impact on the health of a local economy.

The Toronto LETSystem has been in existence for over five years and has over five hundred members. Their di­rectory is extensive and has so many restaurants that they must be catego­rized according to type! Over the past five years, Toronto LETS has facilitated close to 1/2 million in Green dollar trad­ing. Assuming that trades usually com­prise 50% Green and 50% cash dollars, then this barter trade has also created 1/2 million in cash economic activity. For every one cash dollar the Toronto LETSystem receives in member dues, sixteen dollars of wealth is created.

That’s something no government program has ever approached, in terms of bang for the buck, says Chris Hohner of Toronto LETS. The intangible bene­fits of constant skills improvement, com­munity connection, reduction in demand of social services, and generally improved quality of living for the under-employed, make LETS a remarkable resource.

Toronto LETS was recently given a $110,000 Health Canada research grant to determine how much of a differ­ence LETS makes, and for whom. The research will be carried out through the Centre for Health Promotion at the Uni­versity of Toronto and will document the benefits LETSystems can create.

LETS enables individuals to use their skills, gaining things they need and building self-sufficiency and self-esteem. Community organizations can also benefit from Green dollars. They can spend Green dollars on needed services or reduce volunteer burnout by paying volunteers in Green dollars. As well, entrepreneurs and small businesses have access to a new, loyal customer base, decreased cash costs, and increased word of mouth promotion.

Despite their not-for-profit status, LETSystems develop into self-sufficient entities, employing staff for Green dol­lars. With its large membership base, Toronto LETS has the Green dollars to staff an office 20 hours a week.

The only limit to the positive ef­fects LETS can have is who gets in­volved. K-W LETS organizers envision a local economy where signs which say “Green dollars accepted here” are next to VISA signs in store-windows, and where people are able to get what they need by exchanging their goods and services with their neighbours, local businesses and community organiza­tions. What will make this a reality is for people to get involved.