Instead of being forced to close due to the district’s budgetary woes, the teachers and staff at East Side School (K-12) decided to maintain normal operations by issuing its own currency brand. The shortfall in the school’s salary budget allocation will be made up by issuing credits to teachers, who could then redeem those credits for the products of other market entities. Redeemability is not guaranteed, but the teachers hope to convince market sellers that the school’s currency brand represent valuable and sustainable economic activity. When a seller agrees to accept credits from a member of the East Side School, those credits are then used to cancel the seller’s self-declared ‘debt’ to the market.
For its part, the school district would then accrue equivalent debits everytime it issues credits as wages to its employees. The strategy that the East Side School developed is to start accepting tuition in the form of credits that are issued by other independent currency brands. Just like any specialized entity in this market framework, the school would then use those credits to cancel its self-declared ‘debt’ to the market.
As an independent currency issuer, the East Side School must maintain accurate, timely and transparent accounting records so that any informed market participant could readily evaluate whether or not to support the school’s work by accepting the credits of its members. The school is only one of the growing number of self-declared independent currency brands, propelled by members of the public who wants to be selective on what economic acitvities their products and specialization benefit.
Elsewhere, the elite minority of Westland have started hoarding food and other essential supplies, driven by fear that the public would stop accepting their wealth in the form of generic currency brands.