The Revitalist

The Bershires have their own currency (sorry Times Select) — the BerkShare (via CEOs for Cities). The local currency is a project of the E.F. Schumacher Society, which believes that the BerkShares will spur the regional economy by driving more traffic to local businesses. The consumer can buy the beautifully designed (featuring notable Berkshire natives the Stockbridge Indians, W.E.B. DuBois, Robyn Van En, Herman Melville and Norman Rockwell) BerkShares at their local bank at an exchange rate of 10 BerkShares for $9. He can then use the BerkShares to buy pizza, pay for his dry cleaning or get his gutters cleaned—at any local business that participates. The business then can either use BerkShares to pay their vendors or exchange them back for US dollars (at the same exchange rate, a 10% loss). It sounds like the majority of business owners just cash in the BerkShares and take the loss because either their vendors won't accept them, they don't want to pass on the loss to another small business owner, or they value the social solidarity created by the program over the economics. Some even say they feel pressured to participate in the project or face boycotts from BerkShare-ers. The customers get what amounts to a 10% discount on anything they purchase with BerkShares. I assume the theory goes that the cost to the business will be offset by increased traffic driven by loyalty to the local guys. Time will tell...