BerkShares

Definition

BerkShares are a local currency initiative launched in Berkshire County, Massachusetts, aimed at promoting local economic resilience and community sustainability. This alternative currency seeks to support local businesses, foster a sense of community, and resist the impacts of globalization by encouraging residents to spend money within their own community rather than at national chains.

5 Must Know Facts For Your Next Test

1. BerkShares were first introduced in 2006 and are designed to keep money circulating within the Berkshire community, promoting local businesses and services.
2. The currency is backed by a dollar-for-dollar deposit in a local bank, ensuring its value and stability while reinforcing local economic ties.
3. Residents can earn BerkShares by providing services or selling goods locally, which they can then spend at participating merchants in the area.
4. BerkShares have helped strengthen community connections and encourage residents to think critically about their spending habits and economic choices.
5. This local currency initiative serves as an example of how communities can resist global economic pressures by fostering a strong local economy.

Review Questions

• How do BerkShares function as a local currency to promote economic activity within the Berkshire community?
  • BerkShares operate by allowing residents to earn them through local services or goods, which they can then spend at participating businesses. This system encourages residents to shop locally rather than at national chains, keeping money circulating within the community. By promoting the use of BerkShares, the initiative strengthens local economies and builds social connections among residents, thereby resisting the negative effects of globalization.
• Discuss the impact of BerkShares on fostering community engagement and local economic resilience.
  • BerkShares significantly enhance community engagement by encouraging residents to actively participate in the local economy. As people earn and spend BerkShares within their community, they develop stronger relationships with local businesses and other residents. This engagement leads to increased awareness of economic choices and promotes a sense of responsibility towards supporting local initiatives, ultimately contributing to greater economic resilience.
• Evaluate the effectiveness of BerkShares in resisting globalization and how similar initiatives could be implemented in other regions.
  • BerkShares have proven effective in resisting globalization by creating a viable alternative that emphasizes local spending. Their success demonstrates that when communities take ownership of their economic practices, they can effectively mitigate the negative impacts of larger economic forces. For other regions considering similar initiatives, it is essential to ensure strong community involvement, establish a stable backing for the currency, and create incentives for both businesses and consumers to participate actively in the local economy.

Related terms

Local Currency: A currency that is issued for use within a specific locality or region, designed to encourage spending and investment within that area.

Economic Resilience: The ability of an economy to withstand or recover quickly from difficult conditions, often enhanced through local initiatives and community engagement.

Cooperatives: Organizations owned and operated by a group of individuals for their mutual benefit, often emphasizing local production and consumption.