J.D., at Get Rich Slowly, published a guest post (by Loretta B.) yesterday about Time Banking:
Time-banking is built around the basic concept of earning and spending hours. Everyone’s skills, whether they are a medical professional or a house painter, are worth one “time dollar†per hour. The hours that you earn are stored in a “timebank†and can then be redeemed for any service of your choice from any member of the timebank. That is the thing that I like the most about time-banking — it is a great equalizer.
My local timebank is called Community Exchange (CE.) I think that is a perfect name, because the people I have met though the timebank have become my friends and neighbors.
This is an interesting idea, especially for volunteerism, because I can see how it would help to bring a community together, as well as allowing people to ask for help without feeling guilty about doing so (as they would simply exchange the “favor” later on). That said, time banking is nothing more than small-scale, voluntary communism. This commenter disagrees:
Jeffeb3 Says:
March 13th, 2008 at 11:13 am
OMG, OMG, Communism. Communism is evil! OMG!
The worst parts of communism are not present in this time sharing. Anyone who thinks so should go research communism. Communism involves _Taking_ away the wealth of the wealthy, and _Giving_ it to everyone equally. Communism favors the whole over an individual. Time sharing favors the individual. Early communist leaders starved their own people to increase collusion. Time sharing gives people with desired, but less monetarily valued, time an opportunity to pay for other people’s time. Communism’s final stage involves converting the entire world into communism. It’s fundamental idea of communism, Time sharing isn’t even close.
It also really bothers me that people think that socialism is going to destroy the country. The US has never been capitalist. Look at schools, police, the army, fire depts, even politics. These services are paid for by all, and used by some, explain how that is capitalism?
Try to be less Mcarthy, and more friendly.
The fact that timebanking is a form of communism doesn’t bother me, because communism isn’t inherently evil. As long as it’s small-scale and completely voluntary, I have no problem with it (nor do I see any issues with having a communistic bartering system that exists inside a society that is mostly (though not completely) capitalistic).
I am a bit confused about how time banking doesn’t involve a completely equal distribution of wealth. Time is the only resource that is distributed at an equal rate to everyone in the world. No matter what country they’re from, no matter what family they’re born into, no one gets more than 86,400 seconds per day. If those seconds are the currency with which individuals can buy goods or services, then wealth is distributed perfectly evenly.
There are two reasons that communism breaks down when it is large scale and/or non-voluntary. The first reason is alluded to in Jeffeb3′s comment: it is inevitably poorly managed[], either due to ineptness or greed.
The second reason communism doesn’t work is that it stifles the work ethic. The problem with making everyone’s time equal is that while individuals may be seen as “equal but different”, the tasks those individuals perform are not equal (I’ve mentioned this before here). An hour of cooking hamburgers is not the same as an hour of firefighting is not the same as an hour of dog walking is not the same as an hour of performing medical evaluations. If we attempt to reimburse individuals for the same amount regardless of the activity they’re performing, individuals who would ordinarily be driven to perform high-risk or high-skill tasks have no incentive to perform those tasks.
To look at it another way, imagine three artists. The first artist can, in the course of three hours, work hard and paint a impressionist work that inspires great emotions even if you can’t recognize the subject. The second artist can paint to the best of his ability for three hours and paint a recognizable (but not inspired) rendition of pretty much any subject. The third “artist” spends three hours mixing paint and barely touching his canvas, and turns out something that resembles the artwork of a five-year-old child[]. In our current system, the first two artists’ work is almost always more valuable than the third (which of those first two artists’ work is more valuable depends on the beholder, I think), but in a communist society, all three artists’ work is valued equally.
I believe I’ve said this before, but the simplest reason that communism doesn’t work is that it expects human beings to be something besides human beings. In order for communism to work well, we would have to be perfect, because our bad qualities can destroy the entire system. On the other hand, capitalism works very well, because it uses our bad qualities to generate good outcomes. It does not require us to ignore self-interest for group-interest; it uses self-interest to meet everyone’s needs[].
Reading through the comments on J.D.’s site, you’ll see criticism of capitalism. Many of these criticisms center around the fact that it doesn’t promote charity[], but it doesn’t have to. Where Communism uses our good qualities and is destroyed by our bad ones, capitalism makes use of our bad qualities and is enhanced by our good qualities. Systems like the time bank (or “pure” charities, for that matter), which can function perfectly well within a capitalist economic system, highlight this.