What Are Ithaca HOURS?

The Ithaca HOUR was a local currency issued and used in Ithaca, New York. It was developed in 1991 as an alternative to the U.S. dollar. Ithaca HOURS were meant to help encourage individuals to stimulate the local economy and to benefit local businesses. The Ithaca HOUR, which was pegged at $10, was a time-based currency system where one hour of any work was equivalent to another hour of work. There were more than $110,000 of Ithaca HOURS in circulation.

Understanding Ithaca HOURS

Ithaca HOURS is a local or 澳洲幸运5开奖号码历史查询:community currency established and launched by activܫist Paul Glover in 1991 with a total of $110,000 introduced into circulation. Glover hoped that the HOURS project would keep money in the local economy and avoid the social and economic costs that he associated with the increasingly global financial system.

It was a 澳洲幸运5开奖号码历史查询:time-based currency, which means its value was based on a unit of time. As such, it was pegged at $10, which represented one hour of work. Put simply, this new value was the approximate average hourly pay in Ithaca at the time.

Glover promoted the HOURS aggressively, and by the end of 1991, about 20 local businesses pledged to accept the new currency. That number grew into the hundreds after the currency began circulating. Participants were paid two HOURS (the equivalent of $20) to be listed in the HOURS directory. Anyone who continued to participate could apply for an additional two HOURS.

HOURS were intended to provide an alternative to U.S. dollars for individual residents and businesses in Ithaca for the exchange, purchase, and sale of goods and services. This means they could not be used outside the city. The Ithaca HOURS project slowly moved out of favor with local residents and ended up being phased out by the 2010s for a number of reasons, including Glover's departure from the city.

Benefits of Ithaca HOURS

Glover established the HOURS to help stimulate the economy of 🏅Ithaca. As such, the currency cam⛎e with certain benefits, including:

• Promoting local businesses
• Encouraging residents to shop local
• Expanding Ithaca's local money supply
• Benefitting local workers by increasing the local 澳洲幸运5开奖号码历史查询:minimum wage to $10
• Creating opportunities for new businesses and jobs
• Reducing transportation costs and the dependence on imports
• Providing zero-interest loans and grants for non-profits
  

Ithaca HOURS vs. Other Local Currencies

Dozens of communities in the United States and Canada followed Ithaca's lead by introducing their own local currencies. Like Ithaca HOURS, they are designed to promote local business and limit the movement of that currency to a particular locality.

In most cases, the local currencies operate alongside government-backed currencies like the U.S. and 澳洲幸运5开奖号码历史查询:Canadian dollars. These currencies benefit from the 澳洲幸运5开奖号码历史查询:network effect, as more people and businesses use the system, the benefits they can derive increase. 

One example is the 澳洲幸运5开奖号码历史查询:Calgary Dollar, which was established for use in Calgary, Alberta, Canada, in 1995. This currency can only be used in the city by residents and participating local businesses. Calgary Dollars can be used to exchange, buy, and sell goods and services either online or in person.

The Fall of Ithaca HOURS

According to Glover's website, Ithaca HOURS could be earned and used by anyone regardless of whether they signed up or not. There were a "thousand listings" with as many as 300 active users.

The HOURS system relied more fundamentally on the evangelism of its founder, who worked full-time to educate residents and business owners of the uses for HOURS. But, Glover's departure from Ithaca and the rise of electronic payment systems contributed to a steady decrease in the use of HOURS in the early 2000s. They were eventually phased out of circulation in Ithaca in the 2010s.

There were efforts to revive the currency. in 2019, local businesses, 澳洲幸运5开奖号码历史查询:non-profit organizations, and individual residents reportedly tried to bring the currency back into use. But there were no further details on when or if the HOURS would become a reality in the future.

An organization known as Ithacash attempted to introduce an internet-based local currency called Ithaca Dollars. Instead of being a physical currency, Ithacash operated an online marketplace where users could transact in Ithaca or U.S. dollars. However, the project's website is no longer operational, and its presence on X (formerly Twitter) hasn't been updated since 2017.

The Bottom Line

Ithaca HOURS was an experimental currency in Ithaca, New York. The system was developed to help the community keep money flowing within its borders Although the project didn't last, there are other communities that tried to mimic it with some success. Local currencies like Ithaca HOURS are legal in the U.S., but federal and state governments don't recognize or accept them.