The Insula Social Enterprises or Insula Associated external enterprises (operating in the Fractional Reserve Banking [FRB] world) will use several Community Currencies, CC, with different rates. For the purposes of the simulation we use only one.
The Insula Government operates with TXS for collection of taxes and for the payment of the different components of the Citizens Salary.
The exchange rate of the Insula Tax currency (TXS) to the other Community Currencies (CC) is to be fixed at the Insula exchange market. For the simulation we use a 1 TXS = 1 CC relation, just to indicate the legal issuer.
The exchange rate of the Insula with the FRB World € is calculated as follows:
Ideally, Citizens would work 25 hours a week, 100 hours a month, earning an equivalent of 100 TXS, the Insula Tax currency, a month, that is 100 CC. With 100 CC, Citizens should be able to earn goods equivalent to the goods you are able to buy now with an average European salary, say 2.500 €. This would mean an exchange rate of 1 CC = 25 €.
However, during the crisis, it’s difficult to think that Desperado jobs will be paid above 800 € a month. Equally, Desperado jobs will be at least 36 hours a week, 144 hours a month, or over. This means that the exchange rate of the CC is depreciated in the FRB world to 1 CC = 6 €.
For Desperado jobs, forced to work 144 hours a month, salaries in the island could be established as 144 CC.
The volunteering and family average working hours statistics have taken as basis the statistics published by the European Foundation for the Improvement of Living and Working Conditions - Second European Quality of Life Survey – Participation in volunteering and unpaid job – 2011 (http://www.eurofound.europa.eu/pubdocs/2011/02/en/1/EF1102EN.pdf).
Citizens Salary components cannot be paid in full until the goods in the Insula increase. The "salary level" indicates the percentage of the total devoted hours paid.
Citizens salary componets:
In the spreadsheet select Salaries and Taxes sheet.
Economy simulation >