But...do people still use large amounts of cash? I do almost all purchases with credit card. No, I don't carry a balance--it gets paid off at the month and I get REI dividends for the purchases.

The two neighborhoods referred to in the article are very progressive. They're associated with the university. I found Mr. Silver's second post interesting because one of the businesses that should thrive under the local currency concept is Milwaukee's grocery co-op. While the store has expanded and moved, it has been in that neighborhood for at least 35 years. Currently, it is threatened by the Wal-Mart across the street and the Trader Joes' down the road. So, in this case, yes, those local bucks would be for both of his big-chain store arguments.

Would I use the local bucks? Probably not--I just don't use cash. Will I shop local instead of chain? Yes, whenever I can. Small businesses are the foundations of a solid economy (says, the non-economist).