The Miracle of Wörgl
5 days ago
- #economic-history
- #local-currency
- #complementary-currencies
- Wörgl, Austria, successfully combated Great Depression unemployment by introducing a local complementary currency called 'stamp scrip', reducing unemployment from over 30% to near zero.
- The local currency funded infrastructure projects, increased town revenues, and inspired neighboring villages to adopt similar systems before being banned by the central bank.
- Irving Fisher advocated for stamp scrip to end the U.S. Great Depression, but FDR prohibited complementary currencies, delaying economic recovery.
- During the Central Middle Ages (1040-1290), Western Europe thrived using local currencies to fund cathedrals and churches, leading to widespread prosperity and cultural advancements.
- Over 1,000 cathedrals and 350,000 churches were built using local currencies, owned and financed by citizens, not the church or nobility, providing long-term economic benefits through tourism.