Coping with the New Reality

I’ve made it clear that I think things are bad and will only get worse. But I’m sure many of you are also interested in knowing more about how others are coping with what I’ve described as the “unrecovery.” Not surprisingly, the key issue for a growing number of people is a lack of money and other resources. The following reports highlight some of the approaches individuals, families, businesses, and communities are taking as they adapt to the new reality:

Engaging in more ”cashless” transactions

“Bartering to Pay for Items Is Trending Again” (KYTX)

One man’s trash is another’s treasure, and with money hard to come by these days, people are finding other ways to pay for things.

“Swap, swap, swap… Pretty much everything on me I swapped for.”
 
Old fashioned bartering is now the latest trend. Craigslist is seeing eye-popping growth in bartering, citing the lousy economy as the catalyst. Swap.com says its seen more than 4 million barter exchanges since last year, and BarterQuest.com says it has seen a 150 percent increase in users in that time.

People are bartering for almost everything- Bibles, engagement rings, cars, trucks and jet skis.

Encouraging locally-based spending

“Community Currencies Aim to Aid Merchants” (Wall Street Journal)

Hoping to keep their money close to home, three Bay Area communities have begun operating their own currencies.

In June, a group of businesses in San Francisco’s Bernal Heights neighborhood started signing up residents for a debit card that offers 5% of purchases back in a local currency called Bernal Bucks when residents shop in the community. The move follows that of two nonprofits in Marin County—Coastal Marin Fund and FairBucks—which began minting their own $3 coins last year.

The idea is to raise resident awareness about supporting small businesses in an era of big-box national chains, and to find a new way to raise funds for local causes.

“Neighborhoods are taking their economic destiny into their own hands by looking at the money that is circulating in them,” said Arno Hesse, one of the creators of Bernal Bucks.

Boosting participation in cooperative efforts

“Utah Girl Scout Raises Thousands of Dollars for Community Garden” (Salt Lake Tribune)

South Salt Lake • It all began with a stomach-knotting statistic: 1-in-7 Utah children younger than 5 doesn’t have enough food at home.

It’s a number that didn’t settle well with Morgan Barron, a 13-year-old Girl Scout from Riverton who figured the best way to fight hunger was to grow more food.

“I wanted to do something about it,” Morgan said. “I thought it would be important if people in urban areas could plant gardens.”

So the teen went to work, recruiting volunteers and writing grants for a community garden in South Salt Lake’s Harmony Park that now offers tillable plots for about two dozen families near 3700 South and West Temple. It also includes several raised beds for people with disabilities.

The garden was no halfhearted effort. Morgan enlisted the help of about 40 volunteers to dig rows and snagged donations totaling $4,300 from the Girls Scouts and Zions Bank.

“It is great to see our next generation coming forth with creative ideas,” county Mayor Peter Corroon said, “and looking for ways to become more involved in the community.”

Increasing public sector volunteerism

“West Jordan Saves Money Using Resident Labor on Parks” (Salt Lake Tribune)

West Jordan is getting more bang for its parks and recreation buck, thanks to a program that uses resident manpower to build new facilities.

 Hundreds of volunteers were expected Saturday to complete two new parks and playgrounds in the city’s Sycamores subdivision. That brings to five the number of playgrounds built by community volunteers, and will likely mean more in the future.

 The city has allotted $250,000 for construction of the two parks in Sycamores, much of it from dedicated park impact fees from the growing western side. The city would spend the same amount paying professionals to install equipment, said city spokeswoman Kim Wells, but saves money when residents do the installation and that money is reinvested in the park. The savings meant a pavilion, benches and extra trees not in the original plan will be added to the parks built Saturday.

 The program also fosters community spirit, said City Councilman Ben Southworth, and gives residents a stake in their neighborhood. Previous community-built parks have seen less graffiti and crime than their professionally done counterparts, and also get more visitors.

Sharing private resources

“Getting By: Driving the Cheaper Route” (HomeTownAnnapolis.com)

Car pools help workers save in tough economy

In Anne Arundel County, about 700 commuters are part of an online database that helps them find car pool partners.
 
And as tough times have many searching for creative ways to penny pinch, more people are looking into the database and car pooling in general.

Take Leslie Delabar. She manages to save money on gas by making two extra stops during her morning commute.

The Kent Island resident’s first stop is to her day care provider, which is where she drops off her baby by 7 a.m. About 20 minutes later, she arrives in Annapolis to meet up with her car pool partner, Cindy Dooley. Their shared ride to jobs at the University of Maryland in College Park enables them to use the HOV lanes on Route 50 and cut down on gas and car maintenance. They drive together four days a week, saving about $500 a month combined.

They are among the roughly 12 percent of Maryland motorists who travel to work via car pool, a trend experts say is increasing because of high gas prices.

Tapping alternative financing channels

“Pawning Goes High-Tech with Pantique” (SeacoastOnline.com)

Online business helps consumers sell luxury items

PORTSMOUTH — One consequence of tight credit in a stalled economy has been a sudden interest in pawning — one further fueled by reality TV shows such as “Pawn Stars.”

This situation inspired Don Battis to launch Pawntique, an online pawn shop providing short-term loans to upscale clients and small businesses.

“Historically, pawn loans have been for people with no access to credit,” Battis said. “For people who have assets, but need cash, pawning is an option.”

In pawning, a shop accepts an item and loans its owner a percentage of its value — usually around 50 percent, according to Battis. Owners redeem items by repaying the loan plus a fee.

What distinguishes Pawntique from traditional shops is the size of its loans. “We have a $500 minimum loan and go as high as $100,000,” Battis said. “We’re not for people seeking to pawn their iPod or flat screen TV.”

With Pawntique, a Rolls Royce, Rolex or rare art collection is a more likely exchange. Pawning on this scale provides businesses with funding options, Battis said.