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Re-Inventing Capitalism from the neighborhood to the Macro Level


Main Street Micro- EquityShare Incentives Systems (MSEIS) Corporations- inventing our way forward socially & economically from local community to the state and national level

Pain: Everyone seems to agree that the current financial crisis has revealed inherent flaws in 
our
current free market/capitalist system. Some believe that economic growth can
never be the same 
since the economy essentially is in a period of re-alignment
that is best
 understood as de-leveraging, contraction and picture frame
influences on every corner for anything done in any one corner. Nonetheless,
there are no proposals addressing this state of our socio-economic evolution.
This proposal is " a bit of the hair of the dog that bit us." It is a
return to the fundamental dynamics that first led to belief in a capitalist
system.

Proposition: Create a Subscriber-based Loyalty system (you know points for this and that) that deeply incentivizes spending by consumer
 members and concessions by participating
vendors wherein a proportional part of a business owners equity is transferred
to subscribers each year based on patronage and profits. The loyalty system
could be designed to 
increase profits through several optional choices. This
simple model would incentivize patrons, now real stockholders in real and
present businesses to receive take low or no dividends and to rollover 
most profits
toward business expansion. Patrons, now owners would not constantly be chasing
small discounts that threaten a business’ profits and ability to hire and hold
the best employees. From a stock market point of view the patrons of an EquityShare business would
 see higher valuations of the business reflected in its per share price, and hence in their
net asset value.

Related thoughts: This localized market ideally would create a new asset class that 
would build wealth and stability from the local community level upward. Ideally, it would increase
value and opportunity during normal business cycles though especially during

periods of contraction when other overly leveraged businesses would be losing
value 
to the point of insolvency. In a manner of speaking this proposition
would eliminate the greatest threat to business, namely bankruptcy.


© Anthony V. Manzo, Ph.D.

avmanzo@aol.com







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