1. 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

2. 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/michael- moore/michael-moore-says-400-americans-have-more-wealth-/http://www.politifact.com/wisconsin/statements/2011/mar/10/michael- moore/michael-moore-says-400-americans-have-more-wealth-/ Wealth Inequality in the United States

3. The Prevailing Economic Development Paradigm Some of its characteristics and elements include: 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

4. 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

6. W omen’s A ction to G ain E conomic S ecurity (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

7. 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

8. Washington Electric Coop (VT) Serves 10,000 customers in 41 towns in Vermont Community owns the shares In 2002, 1/3 rd of its power came from nuclear Today: 2/3rds of power is generated from landfill methane 100% from renewable energy sources The New Williamstown Solar Farm: A Sizable Presence on WEC’s Power Lines Tom Garden

9. 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

10. 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

11. 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

13. 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 GOALS

14. MONDRAGÓN 100+ networked cooperatives

15. For more information: www.Community-Wealth.org thoward1@umd.edu