Transcript Community Wealth Building: A New Paradigm for Community

Community Wealth Building:
A New Paradigm of
Sustainable Economic Development
St. Louis Federal Reserve Bank – Exploring Innovation Week
Memphis, TN – May 13, 2013
Ted Howard
The Democracy Collaborative
Wealth Inequality in the United States
U.S. Wealth (Net Worth in Trillions)
1.4
1.2
1
0.8
0.6
0.4
0.2
0
1.27
1.22
Top 400 individuals
Bottom 185 million
Sources—Edward N. Wolff, Recent Trends in Household Wealth in the United States, Levy Economics
Institute, March 2010; Politifact, “Michael Moore Says 400 Americans Have More Wealth than Half of All
Americans Combined,” http://www.politifact.com/wisconsin/statements/2011/mar/10/michaelmoore/michael-moore-says-400-americans-have-more-wealth-/
The Prevailing Economic
Development Paradigm
Some of its characteristics and elements include:
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Subsidies and tax breaks to entice corporations to relocate ($80B)
Workforce training not linked to actual jobs ($37B)
Regional trickle down strategies that do not reach low- and
moderate-income neighborhoods
Growth & GDP – toward what end?
Low-wage (non-living wage) job creation, often without benefits
Exclusion of ex-offenders and others with barriers to employment
Gentrification and dispersal of traditional residents
“Throwaway cities” and their infrastructure
Privatization of publicly owned goods
What is the Community Wealth
Building Paradigm?
A New Approach to Economic Development that:
• emphasizes democratization of wealth
• focuses on place & local economy
• promotes broader ownership of capital
• anchors jobs locally
• stops the leakage of dollars from communities
• supports individual & family wealth building
• reinforces stewardship over capital
• generates revenues to finance public services
• leverages anchor institutions for local benefit
• contributes to local economic stability
• total cost accounting of economic decisions
Women’s Action to Gain Economic Security (CA)
• Home cleaning industry
notoriously pays low wages &
has bad working conditions
• Coop founded in 1995
• Mostly Latina immigrants who
own the business
• 5 coops with 100 members
• Wages of $15/hour plus health
• Environmentally friendly
cleaning techniques
New Community Corporation of
Newark (NJ)
• Founded in 1968 by
Monsignor William Linder
• Employs 1,300 residents of
local neighborhoods
• Community-based
business ownership
• Developed shopping
center that houses
community-owned
business and services
• Assets exceed $500 million
• Income recycled to
support day-care and after
school programs, health
services, Youth
Automotive Training
Center
Washington Electric Coop (VT)
The New Williamstown
Solar Farm:
A Sizable Presence on WEC’s
Power Lines
Tom Garden
• Serves 10,000 customers
in 41 towns in Vermont
• Community owns the shares
• In 2002, 1/3rd of its
power came from nuclear
• Today: 2/3rds of power
is generated from landfill
methane
• 100% from renewable energy
sources
Market Creek Plaza (CA)
• Community-designed mixed-use
development; $65 million commercial
and cultural complex in low-income
neighborhood
• Community ownership: 423 residents
own shares worth $500,000; 20% of
equity; will increase to 50% equity
• Neighborhood foundation owns
20%; will increase to 50%
• Former brownfield site; adjacent
to trolley line; TOD
Namaste Solar (CO)
 103 “team” members;
one-half are owners
 4 to 1 maximum salary
ratio
 One owner, one vote
 #1 market share in CO
 2,000+ systems installed
 $15 million in revenue
Pioneer Human Services - Seattle (WA)
• Nonprofit founded in 1962 to
serve clients – ex-offenders
and drug abusers
• Initially nearly 100% grant
funded
• Today employs 700 people,
most from their client base, in
network of their own for-profit
businesses (hotel, catering,
manufacturing)
• $55 million revenue; almost no
grant funding
• Anchored in the community
GOALS
• Anchor capital so it doesn’t get up and leave
• Promote asset accumulation
• Stop $$ from leaking out of NE Ohio
• Stabilize and revitalize neighborhoods
• Develop a model for national impact
MONDRAGÓN
100+ networked cooperatives
For more information:
www.Community-Wealth.org
[email protected]