Frequently Asked Questions
There are a number of questions that are often asked about LETS. Here are some answers:
The system provides interest free credit. In fact,
for the scheme to work, it needs people to go into
deficit. This system allows us to get away from the
misery of mounting debt. We can replace the work debt
with commitment. A negative balance means that you
have issued Exes to others, not borrowed from them.
It is a commitment to your community; you honour it
at your own pace.
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In the mainstream economy this might mean that people
are left out of pocket. In LETS, because everyone
has been credited for any work done, no one person
is affected. The loss is spread over the whole system
and so its effects are reduced. There are some safeguards.
Every member is entitled to know the balance and turnover
of anyone else. So you can check a person's credit
worthiness. If they have a huge negative balance and
no turnover, then you might want to question their
commitment to the scheme. The fact that LETS is a
social network means that this sort of problem is
unlikely.
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For someone in a full time sterling paid job, the
LETS system allows them the benefit of interest free
credit which incidentally supports the local community,
It also allows you to do things you enjoy doing in
exchange for things you would normally not be able
to afford. Should you live with other people you could
join as a family or a household, combining resources
and skills. It is also possible to hold an account
for example in the name of a charity or other organisation.
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One successful way of thinking up skills to trade
in is to think not only 'what do I do for a living?'
but also 'what do I like doing? what am I good at?'
If you are still having a problem, sit down with a
friend and let your imagination run riot. Also read
the Inspiration page.
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It is up to you to price your goods you have to
sell or to hire. You can always change your mind later.
The price for an hour's standard labour is 5 Exes.
If you wish, charges for goods may be taken partly
in sterling and partly in Exes. If you need help,
an existing member would be pleased to advise you.
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No. The purpose of LETS is to allow you to build
a shed for one person and to buy a sweater from someone
else. Direct exchanges are also fine if you can set
them up.
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The LETS system is flexible enough to allow you
to receive all or only a portion of your payment in
LETS credits. For example, a length of curtain fabric
may sell for £20 cash and 10 Exes. Only the
Exes portion of the transaction is accounted for by
the system.
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It is just like the traditional economic system.
The buyer and seller, according to the prevailing
circumstances set prices and quality. The LETS system
merely passes information and maintains the relative
account balances.
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The same rule applies whether you trade in sterling
or in LETS credits. Transactions, which are regular
and of a business nature are taxable, others are not.
You cannot avoid tax liability simply by avoiding
the use of sterling. Each participant is responsible
for keeping track of his/her sales and paying all
taxes that may be due (after deduction of allowable
expenses). The Inland Revenue can insist upon inspection
of the LETS records.
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Under the LETS system, a negative balance means
that you have made a commitment to make a contribution
towards the community in some form or other. Likewise,
the community has made a commitment to work with you
to assist you in this process. No interest is charged
on negative balances, nor is any interest payable
on credit balances. LETS works as a closed system
- when all account balances are added together, the
result is zero.
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The potential exists for an individual to take and
not to give. However, the experience has shown this
situation rarely occurs when an individual is dealing
directly with friends, neighbours and other individuals
recognised to be members of the community. Even if
abuse does take place, nothing is really removed from
the system. People who have received credits from
the defaulter still have them and can continue to
trade unimpaired. In most cases, the community can
help the individuals concerned to discover what they
can contribute to redress the situation. The only
control is to make each person's account balance available
to all participants.
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The social reasons for a LETS system are as many
and varied as the economic benefits it brings. We
have already mentioned some of the economic ones.
LETS is based on true wealth (the availability and
exchange of goods and services) rather than on an
abstract concept of money. It allows people to realise
the abundance around them and to meet their daily
needs with little or no cash. By keeping more of this
value within the community, there is more for everyone
within the system. Also, the community's commitment
to assist those who want to make a contribution leads
to appropriate economic development.
The social ramifications are widespread. Trust, respect and communication increases between participants. This initiates further changes. People tend to gather around a particular interest or concern and the collective energy is very
productive: For example, it may create a viable youth programme. Similarly, older
people may feel more integrated and valued through their LETS membership, The
increase in communication brings about a decline in abuses of the political
system. As the environmental and social consequences of business decisions become more transparent, they tend to reflect more social consciousness and less greed than those made outside the trading area. The vision, then, is one where the quality of life for all members of the community is significantly improved.
There is no limit to the initiatives we could develop. We need to live in the new mindset, develop our Exe life to the full, value each other and - above all - have fun.
Exes aren't meant to be an alternative currency, but a complementary one. It
has been said that participating in LETS is time consuming.
Maybe so. But this is what Alida Gersie writes in
her book 'Earthtales': We are addicted to time-saving,
which has led to a pollution of the mind where no
one has time for a leisurely exchanging of views with
a friend, colleague or neighbour or for any kind of
social interaction that nurtures community. I hope
you agree.
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West
Somerset LETS 
