A Sustainable Miracle? Examining the Long-Term Viability of the Wörgl Experiment

Abstract

The Wörgl Experiment has long been celebrated as an economic success story. Amongst CC advocates the Wörgl Experiment is often seen as an example of the potential CCs have for enacting spectacular economic development at the regional level. However, despite its success, the experiment was short-lived, and thus questions regarding its long-term viability remain unanswered. The primary aim of this paper is to investigate the long-term viability of the Wörgl Experiment. This paper finds that due to the incomplete picture of how the Wörgl labor certificates and the Austrian Schilling circulated concurrently, questions on the long-term viability of the Wörgl Experiment will remain largely unanswered. However, a key contribution of this paper is that it uncovers a potential inconsistency in the data related to redemption of the Wörgl labor certificates for Austrian Schilling. This finding reframes the current understanding of the Wörgl Experiment as the amount of labor certificates redeemed for Austrian Schillings and its implications have not been discussed in the literature. This paper also examines the long-term implications for running a tax-based municipal currency. Based on the above-mentioned examination and consultation with historical literature, recommendations are put forward for how a taxed-based CC can continue to circulate in non-crisis conditions.