Internal credit lies at the heart of the Internal Economy framework, representing a unique approach to value exchange within a community. Unlike traditional taxation credits, which are often backed by taxation power and serves primarily to fund Government operations, internal credit is rooted in the power to sustain life and facilitate cooperative transactions.
At its core, internal credit is a system of accounting and exchange that enables individuals and entities within a community to track and trade the value they contribute to the collective well-being. Individuals and businesses within the community can earn internal credit for their contributions in the exact same way they can receive money (tax credit), whether it be through their labor, goods, or services. This internal currency then circulates within the community, allowing people to buy goods, pay for services, and support local businesses.
Let's explore how internal credit is created and its practical application through a real-life scenario involving a farm.
Imagine a group of farmers working together on a cooperative farm. As they cultivate the land, tend to crops, and produce food, they generate value that enriches the community. Part of this value is captured through internal credit. Rather than relying solely on external currencies or traditional financial systems, the farmers record a part of their contributions in a community database, effectively marking the creation of internal credit.
For instance, let's say Farmer John dedicates several hours to planting and tending to the farm's vegetables. His efforts result in a bountiful harvest, contributing to the overall food production of the community. In recognition of his contribution, as part of his salary in conventional money, he may also receive internal credit that is created and recorded in the community database, symbolizing the value generated by his labor and expertise.
These internal dollars (or pounds or any national currency) can then be utilized within the community, exactly like usual $, to the difference that internal $ can only be used at participating businesses. The internal economy is not imposed on any 1. Other members of the community, such as families or local businesses, can trade their own goods or services for the internal dollars earned by Farmer John and then spend it at any participating business. 1 internal dollar equals 1 tax dollar (1i$ = 1$). This system fosters a sense of interdependence and cooperation, as individuals recognize and appreciate the value brought forth by one another.
One of the remarkable aspects of an internal economy is its potential to attract external credits. As communities develop a strong and vibrant internal economy, they become more attractive to visitors, tourists, and neighboring communities. The unique value generated by a thriving internal economy becomes a magnet for external credits, bringing in additional financial resources from outside the community.
Imagine a community that has successfully built a strong internal economy. Local businesses are flourishing, and the community's quality of life is thriving. As word spreads about this vibrant and self-sustaining community, visitors from neighboring areas are enticed to explore and experience the unique offerings. These visitors bring with them external credits, injecting new resources into the community and further fueling its economic growth.
This cycle of internal and external credit exchange creates a positive feedback loop. The stronger the internal economy, the more attractive the community becomes to external sources of funding. This, in turn, enhances the community's ability to sustain and expand its internal economy, fostering a self-reinforcing cycle of growth and development.
In essence, the Internal Economy framework introduces a new paradigm where communities race to build their own attractive and self-sustaining internal economies. It encourages collaboration, innovation, and a shared commitment to local well-being. As communities embrace this approach, they not only unlock the potential for economic prosperity but also nurture a sense of pride, ownership, and interconnectedness among its members.
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