Local economy

We believe that current discussion about local economies is being dominated by a number of powerful myths.

Myth 1: The economy is about money: Many people assume that the health of an economy is measured by how much money is being spent. It is true that one dimension of an economy may be the exchange of money for goods. But 'the economy' is not about money or the exchange of money. 'The economy' existed a long time before the invention of money. And humans were not the first inventors of 'the economy'.

The concept of 'an economy' is almost synonymous with the concept of 'community' (whether we are considering ants, bees or humans). A community consists of individuals who pool their efforts in order to increase 'utility' while reducing the energy needed to gain that utility. '

Economic strategies for communities, cities and nations must carry the same goal as transport and urban design strategies: increasing the efficiency with which diverse exchanges can be transacted while at the same time increasing the utility inherent in those exchanges. The economy is not therefore some external reality. It is intimately bound into the totality of our life. It certainly is not just the exchanging of money for goods and services. The 'economy of exchange,' facilitated by being part of a community, is an old person on a seat supervising neighbourhood children playing in the street. It is the listening ear offered by the butcher. It is the street busker. It is the sense of belonging we get from helping someone who has fallen down.