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Money is a social construct, but it is a very useful means of exchange between parties without the need of troublesome conversion rates like how many chickens a smartphone costs. One of the best things about social constructs is that they are mutable. Despite the fact that the government would like you to believe that the money they issue is the only way to exchange goods and services, the rise of cryptocurrencies has shown that the true power of money rests with the people. In fact, trust of the public is the #1 reason government-issued currencies work at all. While a government can debase it’s money through overprinting and other abuses, the fact is that money doesn’t work unless everyone believes in its value.
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Hypothetical cryptocurrency
Let’s say I’m in charge of a small municipality. While I think people should be able to earn more money if they make awesome contributions to society through some sort of market, I don’t think they should do that at the expense of people dying in the streets or because they can’t pay for medicine. How do I design my money to have the appropriate incentives to make sure everyone is taken care of?
One option is Universal Basic Income (UBI), so let’s bake that in from the beginning. We’ll need to generate the money for the UBI somehow, and the land value tax or the Fair Tax are the top two candidates for simple and fair taxation. Since I also want to disincentive sprawl, we’ll go with the land value tax in this example. In short, the land value tax charges someone a tax based on the amount of land they own. I’ve seen this likened to a rent paid to The People if one assumes all land belongs to the citizens of a given region and that private use is a lease of that land from the true owners.
When someone pays their land tax it goes in a big piggy bank along with all the other landholders. Then, every month each citizen gets a UBI check deposited into their personal account to pay bills, get food, and buy whatever other things they need.
Globle
I’m not affiliated with Globle, but they have an interesting approach to the incentives issue of the current corporate capitalism system we have. Their approach combines UBI, venture capital, and Kickstarter into a sort of corporations by the people model. As a holder of Globle cryptocurrency, people can vote on what companies and/or products they want to see in the market. Then, based on how those companies perform, part of the company’s profits go to the investors and part goes back into a UBI fund for everyone. It’s hard to say how it will play out, but I do think it’s a novel approach to funding UBI that would also help companies and people work together better since their well-beings are more intrinsically intertwined.
What sort of incentives do you think would bring us closer to a solarpunk society? Let us know in the comments below.
