Capitalism 3.0 Chapter 5 Reinventing the Commons Mark Kolonoski

Add a commons sector to balance out the private sector US private wealth totaled $48.5 billion Top 5% owned more than bottom 95% 2001 Common assets worth over $60 trillion Private assets worth $40 trillion

Private wealth increases due to common assets Example- the value of private homes can increase without any upgrading due to the desirability of the neighborhood Should the homeowner reap all the benefits without contributing anything in return?

Natural assets are irreplaceable Unlike private assets, when natural assets are out of service, there is no one else who will provide a comparable service to users. Therefore, what can we do to protect these natural assets?

Give Nature property rights They are legal enforceable agreements. Give rights to use, exclude, sell, rent, lend, trade and bequeath. Do not have to be concentrated in profit- maximizing hands

How do we manage the common sector? We need a SET of institutions. The commons sector should not be a monoculture like the corporate sector. Each institution should share a set of organizing principles.

Common Principles 1. Leave enough as good in common Institutions must make sure enough resources are left for everyone forever and in the same condition, or better, as they are in now. Patents and copyrights should be minimal

Common Principles 2. Must put future generation first Currently, corporations put stockholders first, the government puts donors and living voters first. Trustees should be legally accountable to future generations.

Common Principles 3. The more the merrier While private property is exclusive, common property is inclusive. The more participants, the greater the focus on preservation. Applies most clearly in commons like culture and the internet.

Common Principles 4. One person, one share 4. One person, one share Not everybody can receive limited use Everyone should receive equal shares of income from the sales of limited use rights.

Common Principles 5. Include some liquidity 5. Include some liquidity Income sharing would end private property’s monopoly on liquidity and peoples attention. People would notice private property if they received money from it. Common property rights shouldn’t be tradable.