What is the Sharing Economy and Can it Work in Middle America?

There's a new movement called the sharing economy, a philosophy that people can share what they have instead of constantly buying more stuff. Think recycle meets the co-op. But can the idea of a sharing economy fly in conservative Middle America and will it work for me?

Basic Premise

According to a December 2011 article in The Atlantic , the sharing economy, also called collaborative consumption, is driven by "Americans who no longer want to prop up our faltering economy with endless and thoughtless consumption." The alternative, they explain, is a sharing economy where people who no longer need things give or loan them to others at no charge and with no strings attached. That sounds pretty groovy.

Dang Hippies

For a Midwest mom like me, the sharing economy sounds like a hippie philosophy that's best left to west coast types who like peace circles and singing Kumba Ya. The reality, however, is different.

For one thing, the sharing economy isn't new. Libraries are one good example because they allow a community to share books. Carpooling, swapping coupons, and borrowing the neighbor's lawn mower are other examples that we see every day. So every time I lend a cup of sugar to my neighbor, I'm participating in a sharing economy.

With the help of the internet, the sharing economy is expanding and changing. In the new sharing instead of carpooling, it's car-sharing. Instead of hand-me-downs, it's freecycle.org.

What's Car Sharing?

According to Treehuggar.com , car sharing is like renting with a twist. In a car sharing association, individuals ban together and put their vehicles into a pool that's available to other members. The car owner doesn't make a profit and the borrowing member doesn't pay a rental. According to Carsharing.org this process saves energy and curbs emissions by reducing overall vehicle distances travelled.

Freecycle

Freeecycle is another example. At freecycle.org, members use a web site to list goods they have, such as old toasters, magazine or old cloths. Users who want or need those goods simply step forward and offer to take them. All of the transactions are free.

Other Examples

Sites like SwapStyle.com and ReFashioner provide platforms for sharing clothing. Lendingclub.com offers a user driven alternative to banks. Cohousing communities, which are designed to fill the unique needs of seniors, are another example.

Left and Right

With the help of technology, the sharing economy is becoming gaining greater appeal. Conservationists like it because it decreases the production of new goods. Frugal moms like it because it provides inexpensive alternatives to daily expenses. Fiscal traditionalists don't object because it's doesn't involve tax dollars.

Who doesn't like it? Some businesses object when sharing impacts their sales. Local governments may find sharing cuts off their access to sales taxes. And some fear that "community sharing" is another example of our country's march toward Marxism.

What's Next?

So can a sharing economy work in Middle America? Social technologies are making it easier for regular people to find creative ways to share. That means we'll probably see more resource sharing in the next few years. As a mom with three kids and a budget, I'm warming up to the idea. Free, after all, is a price I can afford. Just don't ask me to sing Kumba Ya.