Aging policies, entitlements, and the deficit.

Area of Science:

• Social Sciences
• Economics
• Public Policy

Background:

• Adequate funding for domestic programs like health, housing, and welfare is insufficient.
• Societies traditionally use market incentives, psychological incentives, and coercion to address unmet needs.

Purpose of the Study:

• To examine the limitations of the nonmarket economy in meeting societal needs.
• To introduce and describe a novel economic strategy: local, tax-exempt currency (Time Dollars).

Main Methods:

• Analysis of the nonmarket economy's shortcomings.
• Description of Time Dollars as a hybrid model combining market and psychological incentives.
• Review of existing knowledge on the efficacy of Time Dollars.

Main Results:

• The nonmarket economy faces inherent limitations in funding comprehensive social programs.
• Time Dollars represent a fourth strategy for addressing unmet needs by integrating economic and social rewards.
• Evidence suggests Time Dollars are effective in motivating participation and addressing social deficits.

Conclusions:

• Systematic experimentation with Time Dollars is recommended for the Clinton Administration.
• Utilizing mandated funds for Time Dollar pilots can address critical areas like long-term care and child welfare.
• This innovative currency model offers a sustainable approach to augmenting traditional social support systems.