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Reviving Porch -To- Porch Economics

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Mathew Ingles

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Your grandparents earned money selling to their neighbors. And, they didn’t need an annoying pyramid scheme to do it. Selling what you have extra, and helping out neighbors in your spare time can be more valuable than you think.

In most places in the world, the idea of doing business with your immediate neighbors is not that unusual. People are bartering and trading over fences and across hedgerows. The family works for the family, and generally speaking, the money stays local.

pexels-photo-1508666.jpegYour local produce stand or Farmers Market can be an amazing resource. They often specialize in seasonal items that can be extremely affordable. Stock up on tomatoes and make tomato sauce, or freeze a bunch of broccoli. Save money and keep money local.

Not that long ago we had the same sort of system here in this country. The porch-to-porch economy! The farmer would sell her eggs off her front porch. She might take that money and give it to the shoemaker in town to make shoes. The shoemaker might give it to the baker for bread. And the baker would use it for eggs!

Not only was all this going on convenient, but it was also economically prosperous! The money moved around town. Everyone got what they needed, and everyone was paid fair for their work. Nowadays we take our paychecks and we hit the box store or the mega website and spend our money where it zips off to some bank account far, far away. 

In most places in the United States is it still legal to sell a vast amount of things off your front porch. Rules vary from state to state. There are foods you can legally sell off your front porch. There’s also a lot of handmade goods that we could be providing for each other. So things like bread, jam, desserts, and candy could be something we get from each other. Tea, herbs, and spices, and pet treats are all things a lot of us use. Also, lots of handmade things. Everything from birdhouses to shirts. Kid’s toys and artwork. The depth of this micro-economy is almost endless.


pexels-photo-3621536.jpegFood, art, and crafts are just some of the things we could easily market to each other. If we can find a way to meet more needs within our community, the stronger our local economies will be.

When you hire an Uber driver to take you for a spin that driver makes about 30% of the fare. The rest gets collected by a multimillion-dollar corporation. I’m sure if your fare was less than $25, and the driver’s pay was more than 10, you’d both be a little happier. By embracing a porch-to-porch economy we cut out a lot of this middle man profit. It’s likely why we don’t hear much encouragement for this kind of thing. Large corporations have their hands in everything from classified ads to Christmas tree sales.

It’s possible that in this country we’ve forgotten to cherish the right to have this sort of super local-economy functioning. Consider the fact that maybe that economy is slowly being taken away. How many businesses can you call local anymore? How much of your spent money stays within your community? I’m guessing it’s less and less all the time.

pexels-photo-3962285.jpegIt’s become a pretty cliche thing to say that we should shop locally. But, if you hunt around you might find that a lot of businesses in your community can provide you with a better product or service for a better price than you pay now.

So is there a way to get the gears of our local cash machines cracking again? Absolutely. Start by looking around your area to see what you can obtain locally. Now you might say, I can’t afford to buy things locally because they’re cheaper from large corporations. That may be true for some things, but not all of them. When it comes to second-hand finds, local is king. Things like lawnmowers, garden utensils, outdoor equipment, and furniture don’t always need to be bought brand new. And, if you can find a local source for classifieds, even better. Or, find a community board that lets people trade messages and flyers.

You might find something in your area called a local exchange. They act as time banks, providing the community with a place to barter goods and services and act as a local record-keeping system for things traded. Some even print local currencies. Look for a local exchange close to your community.

Born and raised in Upstate New York, Mathew lives in a wooded valley north of the Susquehanna River with his wife and kids. His first book "Simple Sutras" was published in 2014

 

 

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With the supply and shipping issues, it's going to be more important than ever to keep our economy as local as humanly possible. 

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This concept is known as the "Shadow Economy" (sometimes "underground economy" or "grey market"). 

It is also long been a concern for the powerful entities that control the "official" economy....

The IRS:

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The best way to locate an undergrounder is through cash invoices found in related examinations. When the examiner encounters payments for goods or services made in cash and verified by questionable,  possibly handwritten, invoices, it is very likely the taxpayer paid an undergrounder to do the work.  further questions should be asked to determine how the taxpayer located the underground worker, and if the worker is known to work for other local businesses, or if they worked on personal jobs for the taxpayer.

If the examiner follows up and determines the undergrounder’s home is not extravagant, do not be dissuaded. Even a small economic lifestyle will cost money to maintain, and it may be deceptive because cash expenditures and cash accumulation are not immediately evident. The undergrounder’s lifestyle will still require more income than what is reported.

The Federal Reserve :

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The informal economy, also known as the underground economy or black market, is very hard to measure. A good example is the produce vendor on the street who sells the same vegetables you find in the supermarket but handles only cash and pays little or no taxes

The International Monetary Fund

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A factory worker has a second job driving an unlicensed taxi at night; a plumber fixes a broken water pipe for a client, gets paid in cash but doesn't declare his earnings to the tax collector; a drug dealer brokers a sale with a prospective customer on a street corner. These are all examples of the underground or shadow economy—activities, both legal and illegal, that add up to trillions of dollars a year that take place "off the books," out of the gaze of taxmen and government statisticians.

Investopedia  :

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All such under-the-table transactions, in which participants fail to report their income to the IRS or the state, are technically considered to be underground economic activities. This status can even apply to babysitters who don't report the cash that they pocket after watching Junior down the street.

And commercial interests like MasterCard :

Quote

 

Action is needed and it should come in the form of education and awareness raising activities for consumers on (1) how greatly the shadow economy affects economic growth and spending on public services and (2) on how we as consumers can take steps to counter it. Simply asking for a receipt makes a difference but often we don’t do it. By combining this type of behavioural change with a move to a cashless society we can effectively counter undeclared transactions.

To enable this shift, investment and development of payment infrastructure is needed at both private and public level. It can facilitate not only the registering of transactions but also speed, reliability and security of payments and collection. Whether it be paying utility bills or tax online or buying groceries at the supermarket, consumers have shown willingness towards this type of cashless transaction. Nearly 80% of respondents across the CEE region are eager to pay electronically more often and 86% would take receipts for each transaction

 

Sadly, reliance on technology and increased scrutiny of cashflow (by the forces mentioned above, et al) are making it more difficult for today's generations to participate in the porch-to-porch relationships that our grandparents were free to engage in.

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1 hour ago, MsKreed said:

Sadly, reliance on technology and increased scrutiny of cashflow (by the forces mentioned above, et al) are making it more difficult for today's generations to participate in the porch-to-porch relationships that our grandparents were free to engage in.

Good grief!
 

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