The COVID-19 pandemic exposed the fragility of university finances, highlighting a long-standing disconnect between higher education budgeting and broader societal shifts in monetary policy. Congress injected trillions in pandemic relief, the Federal Reserve expanded its balance sheet, and cryptocurrencies surged in popularity. These actions underscore a crucial point: money is not a finite resource but a system we actively create and shape. This concept, central to Modern Monetary Theory (MMT), asks not “Where will we find the money?” but “Who creates money and for what purpose?” This article explores how embracing this principle, through a concept we call “Try Money,” can revolutionize higher education funding, ensuring its sustainability and accessibility for all. Let’s try money – a new approach to funding higher education.
From Finding to Creating: Moral Economies of Money
Historically, social movements haven’t focused on redistributing existing wealth but on reshaping the very systems that create money. Jakob Feinig, in his book Moral Economies of Money, highlights how movements, from 18th-century municipal currency initiatives to 19th-century populist campaigns against the gold standard, aimed to democratize money creation. Feinig contrasts this with “monetary silencing,” where ideologies portray money as scarce and limit democratic control over its creation. This silencing is perpetuated by privatization, from corporate finance to blockchain currencies, reducing participation to mere ownership in volatile markets.
Applying Feinig’s concept, we can envision a movement for a democratic and well-funded higher education system. This involves challenging austerity mindsets, dismantling the myth of “taxpayer money” as a zero-sum game, and rejecting revenue-driven budgeting tied to endowments and debt-inducing tuition. Instead, we should embrace MMT economist Stephanie Kelton’s assertion: “We can afford anything we can actually do.” The challenge lies in gathering resources equitably and reparatively. Trying money offers a potential solution.
The Uni: A Proposal for University-Issued Money
We propose that universities issue their own currency, called “unis,” inspired by municipal bonds (munis). This concept, initially conceived as a response to pandemic-era fiscal crises, has evolved into a multifaceted program. We urge Congress to amend the Public Banking Act to empower nonprofit colleges and universities to create money. Simultaneously, we encourage faculty, students, and community members to develop campus currencies, fostering democratic participation and ecological resilience through practical experience. Let’s try money and see how it can transform higher education.
The Public Banking Act and the Potential of Unis
The Public Banking Act (PBA), introduced by Congresswoman Rashida Tlaib, aims to establish a system of public banks through the Federal Reserve. Currently, private institutions primarily hold the power to create money, a privilege legal scholars call the “finance franchise.” The PBA seeks to broaden this franchise, allowing public institutions to create money for public purposes. Amending the PBA to include nonprofit colleges and universities would enable them to issue unis.
With a public banking charter, universities could bypass state legislatures and directly address community needs. Unis, circulating as US dollars within the Federal Reserve System, would facilitate this. Even without amendment, the PBA’s framework positions universities as strong candidates for public banking charters and capitalization assistance.
From Revenue-Contingent Finance to Grant-Based Budgeting
Universities currently rely on revenue-contingent financing, tying their budgets to tuition, endowments, and private investments. This model fosters precarity, drives tuition hikes, and prioritizes private profit over public good. Unis would enable a shift to grant-based budgeting, prioritizing community-identified needs and freeing universities from the constraints of market-driven logic. Let’s try money and shift the focus from profit to purpose.
Launching the Uni Movement: Advocacy and Experimentation
Realizing the uni vision requires a two-pronged approach. First, advocating for the passage and amendment of the Public Banking Act through public campaigns, media engagement, and legislative outreach. Second, launching grassroots campus currency initiatives. Faculty can create classroom currencies, replicating the circular flow of money creation and taxation on a micro-scale.
Pilot programs, like the Cortland uni at SUNY Cortland, demonstrate the potential of campus currencies to engage students in community projects, fostering learning and addressing local needs. Expanding these initiatives through digital platforms and partnerships with municipalities could pave the way for broader uni adoption. Trying money at a local level can demonstrate its viability.
Conclusion: Embracing a New Monetary Future for Higher Education
The current moment presents a unique opportunity to reshape the financial foundations of higher education. While corporations promote privatized, data-driven models like the “metaversity,” we can choose a different path. By embracing the principles of MMT and actively creating money for public good, the uni movement offers a viable alternative. It’s time to try money – to build a more democratic, sustainable, and equitable future for higher education. Let’s try money and create the future we want.
