Limiting money: redesigning the artifact that shapes modern people

Abstract

AbstractThe transdisciplinary argument in this article is that the social and ecological unsustainability of modern, globalized capitalism ultimately derives from the design of its central artifact: what Polanyi called all- or general-purpose money. The notion of a singular measure of economic value is a peculiar cultural conception that is inherently at odds with physical reality, yet it pervades modern economic thought and practice as if it were immutable. To transcend the political impasse of economic globalization, a complementary national currency (CC) exclusively for local use could distinguish a sphere of exchange and special-purpose currency for basic needs from a global sphere of more remote exchange-values. To avoid the pitfalls and failures of earlier experiments with local currencies, such a CC would require the support of national authorities, the specified objective of sustainable consumption and production, and systematic efforts to provide citizens and entrepreneurs with ample incentives to utilize it. In combining the concept of a CC with that of a universal basic income (UBI), the reform would allow their advantages to complement each other, joining the generalized scale of UBI with the potential of politically influencing consumption patterns that is inherent in CC. An essential difference in relation to earlier experiments would be that the reach of the CC would not be defined in terms of the geographical location of retailers but in terms of the derivation, relative to the consumer, of the products and services into which it could be converted. Although no such system yet exists, this should not stop us from imagining its possibilities.