Imagine a world where a community’s financial priorities routinely reflect its values.
Rather
than being determined by faraway lawmakers or by single-minded
corporations, a community’s economy would be managed by the people who
use it. Community infrastructure, social welfare and local quality of
life would all be in the hands of the people who are impacted directly
by them.
That’s the idea behind Common Good,
a local nonprofit organization that’s developing a system for giving
communities control to fund the kinds of large-scale projects that
typically require involvement of the government or big businesses.
“This
gives us a hope of making the world as good as we want it to be, and to
have some control over that, rather than feel like we’re victimized by
our own institutions,” said Common Good Founder and Executive Director
William Spademan. “This movement toward a better world, that we all know
in our hearts is possible, can happen better if we have money to fund
it better. That’s the missing piece we think we can provide with this
system, if we work together to make this happen.”
How does it work?Basically,
Common Good works like a bank. Members deposit and withdraw money, and
they get a Common Good charge card they can use to pay at participating local businesses.
When members and businesses pay one another with Common Good
credit, the transaction is reflected in their accounts, changing the
amount of money they have available to use within the system or to
withdraw if they want to cash out.
But unless someone makes a
withdrawal, the dollars in the central fund never move. Credit moves in
circles between accounts within the “bank.”
What
makes Common Good different from a typical bank is that it is owned
collectively by the members. So when Common Good invests its money, its
decisions are made democratically.
“We believe what we need is greater community
democracy, because that’s the level where we see what’s needed, where
we care enough to make that our priority, where every voice can make a
difference, and where there isn’t so much big money corrupting our
democratic process,” Spademan said.
Once an investment project is
up and running, the business and its employees become part of the Common
Good system. As long as the project earns at least as much money as it
costs, the community’s “bank” recoups its investment, and no one loses
any money. If the project is at all profitable, the collective fund
grows, advancing the community’s ability to fund larger projects.
“Think
of the investments as the community collectively owning a share of the
businesses in our region,” Spademan said. “So we all have a stake in the
success of our local businesses, which helps them flourish, because we
want them to, and we get a share of their success.”
There are
five categories for funding projects: local business development, food
systems, social justice, environmental sustainability and the arts.
All
members have voting power — about 320 people in the Greenfield area so
far. The decisions are democratic, but there is a built-in protection of
minority opinions. A project can be rejected if at least 5 percent of
the community vetoes it.
“This is based on what everybody will be
content with, rather than what the majority wants and the other 49
percent will hate,” Spademan said.
Putting the system in practiceSo
far, the system seems to be working. In 2017, Common Good of Greenfield
used its investment program for the first time to fund eight projects
in the area — including equipment upgrades at the pay-what-you-can Stone
Soup Cafe in Greenfield, renovations at the Shea Theater Arts Center in
Turners Falls, rooftop solar panels at the Ashfield Lakehouse and a
worker-owned trash-composting business — worth $10,000 total.
For
that first trial run, the Common Good non-profit guaranteed the $10,000 —
so that no members would lose their money in case the investment
projects didn’t end up paying for themselves. (In the future, when the
system is fully operational, investments will be guaranteed by groups of
members or individuals.)
But after the initial $10,000 dip in
the collective fund following the grants, the money came back almost
immediately, and then continued to generate more, Spademan said.
“This
demonstrates the principal that if we make wise funding decisions
locally, the Common Good system gives the same amount of money to use
again the next year and the next and the next,” Spademan said.
For
its second round of funding projects in the fall of 2018, Common Good
did almost twice as much: $19,000 in grants, loans and investments to 14
projects in Franklin County. They include a program at Greenfield
Community Acupuncture to treat people in opioid recovery; a training
conference by Franklin County Continuing the Political Revolution on
democratic participation in rural communities; the non-profit Root
Studio, a yoga-based mentorship program for teen girls in Turners Falls
struggling with poverty, abuse, addiction and sexism; and monthly
Community Nights at Leyden Woods, hosted by Musica Franklin.
The
Compost Cooperative got a grant from Common Good last year, and a loan
this year. It is a worker-owned compostable trash collection business
designed to employ formerly incarcerated workers. The co-op worked with
Common Good on the terms of the loan.
“They understand the
landscape in Franklin County and the needs,” Compost Cooperative Founder
Andrew Stachiw said of Common Good. “It’s easier for them to see how
the Compost Co-op is a service to our community.”
If Common Good
meets the designers’ ultimate goal for it — to sign up half the
residents and businesses in Franklin and Hampshire counties — it will be
able to pay $100 million a year in investments and grants, Spademan
said.
“Think of it as 100 times what we did in Greenfield in 2017, twice a week,” he said.
Regardless
of how much Common Good grows, Spademan said the increased funding is
“going to make a splash, and people are going to notice. People might
get addicted to more participatory democracy.”
Spreading the ideaCommon
Good has been in development, in different forms, since 2002.
Originally, it worked through a checking system, but that only lasted
about a year.
“It was too informal and people weren’t buying into it,” Spademan said. “It was too fringey.”
After that, the organization tried to set up its own bank. That was about to get off the ground, when the crash of 2008 came.
The
current model has been in development since then. At this point there
are about 320 members of Common Good of Greenfield, and about 65
businesses in the area that accept it as payment — plus about a dozen
more added in the last six months since the program began expanding to
Amherst and Northampton. There are two other test markets — in Goshen,
Ind., and Ann Arbor, Mich., with about 400 members between them — but
Greenfield’s is the furthest along. The other two haven’t yet reached
the point that they can fund projects.
As the system is refined,
the plan is that administrative work — the accounting, the evaluating of
grant proposals — will be handled by professionals on a regional basis.
Currently, the nonprofit’s four-person staff does that work for the
Greenfield system.
When it’s ready, the model will be exportable to any community that wants to set up their own Common Good economy.
“Each
community can go its own way,” Spademan said. “That diversity will
present a richness where each one of us can learn from the others what
works, while all individually using this power of money to pursue what
we think is important in our own communities.”
At a certain
point, when a region becomes “saturated” — when the number of people in
the system reaches a critical mass so that membership is no longer
increasing regularly and the flow of money into the Common Good economy
slows — it becomes more viable to fund projects that aren’t designed to
make money, like welfare programs to support those in need.
“We’re
not in a position to do that very well yet,” Spademan said. “But
ultimately, if we get to this regional level where most of the people in
our region are doing this and we have hundreds of millions of dollars
in the account, we can invest in that stuff, and the investing in stuff
doesn’t even mean that the money leaves the community fund. It goes from
one person’s Common Good account to somebody else’s. It’s going in
circles.”
This fall, Common Good is hosting a conference called
“The Revolution Will Be Funded” at Hampshire College to draw in local
governments and community-minded businesses and nonprofits. Spademan
thinks it could dramatically affect local membership. The organization
expects, conservatively, to grow to 5,000 members in the next two years.
“Imagine if all of us, from the time we were born, grew up
knowing we’d have enough to eat and a place to live and a job, so that
we were free to pursue our dreams and contribute to society in a way
that brings us joy,” Spademan said. “We see this freedom to pursue
happiness as the purpose of a Common Good economy.”
To open a personal or business account with Common Good, visit new.commongood.earth/signup. For more information, call 413-628-1723 or email info@commongood.earth.
Staff
reporter Max Marcus started working at the Greenfield Recorder in 2018.
He covers Northfield, Bernardston, Leyden and Warwick. He can be
reached at: mmarcus@recorder.com or 413-772-0261, ext. 261.