Community Capitalism

2 min read

Based on their actual efforts and investments, all participants benefit equally from community capital and earn the same premium dividend on their investments.

To appreciate the NewVistas economic system, it’s vital to understand two foundational principles: community capitalism[1] and individual stewardship.

Most human economic systems have overemphasized either communalism or individualism at too large or too small of a scale. However, an economy can’t be sustainable or scalable unless community capitalism and individual stewardship are balanced together in the right proportions and at the right scale of 75,000 to 100,000 participants, with a fully integrated community platform to facilitate the economy.

A NewVistas community leverages participants’ combined capital to enable prosperity for the entire community.

Capitalism comes in many forms.[2] The current U.S. system of individually based capital works well for many high-income individuals. However, individual capitalism allows too much gaming of the system and always eventually polarizes wealth.

In America, the middle class is shrinking as more capital is consolidated by those who are already wealthy.[3] Globally, the trend is even worse. According to Oxfam, “New estimates show that just eight men own the same wealth as the poorest half of the world.”[4]

NewVistas provides an effective, market-driven alternative to individual capitalism. By enabling contractors and small businesses to concentrate their financial and intellectual capital at an effectively sized community level, a community’s banking system leverages the combined capital as a larger, more diverse, maximally efficient portfolio for the benefit of all participants.

All participants benefit equally from community capital, based on their actual efforts and investments. Everyone earns the same premium dividend on their investments. No one gains an exclusive insider advantage by being more connected or fortunate than others.

Instead of individuals acting as solo capitalists, an entire NewVistas community of up to 100,000 participants acts as “the” capitalist. Each NewVistas community invests primarily in the community’s own infrastructure and, as needed, in helping grow the community’s diversified, individually owned small businesses.

Each individual focuses on his or her own productivity instead of trying to manipulate the system to make money on inflation, timing, insider knowledge, or the labor of others. The entire community benefits from everyone’s increased productivity. By participating in a NewVistas community, participants become more prosperous than they could on their own.

Another benefit of leveraging capital at the right scale is that more capital stays within a community and enriches it. In today’s economy, insurance companies, banks, venture capitalists, lawyers, accountants, and landlords extract tremendous value out of individuals for their own benefit. This is avoided through the efficiencies and safeguards of community aggregation of capital.

By focusing capital at the size of 75,000–100,000 participants, an economic community becomes large enough to manage its own risks and leverage its own assets, so capital stays within the community rather than leaking to outside expenses and investments.

  1. “Community capitalism is an approach to capitalism that places a priority on the well-being and sustainability of the entire community, not just the lucky few” (https://en.wikipedia.org/wiki/Community_capitalism).
  2. For a useful overview on capitalism, see https://www.youtube.com/watch?v=YOaJe68C-bU.
  3. See http://www.pewsocialtrends.org/2015/12/09/the-american-middle-class-is-losing-ground/
  4. Oxfam, “An economy for the 99 percent,” January 15, 2017, https://www.oxfamamerica.org/explore/research-publications/an-economy-for-the-99-percent/