Local Stock Exchanges: The Next Wave of Community Economy Building

The collection of lectures and publications from the Schumacher Center for a New Economics represents some of the foremost voices on a new economics.

Michael Shuman asks his audience how many have pension funds, and a fair number of hands go up, then enquires of those who have them, "How many are primarily invested in local business?” Almost no one raises a hand. Why is it that even “the most local-economy-minded people” do not own stock in local companies? It’s not because local businesses are poor investments; in fact, Shuman details ways in which small place-based businesses are more stable and do more for local economies than large corporations; the problem is the legal and financial industry infrastructure. Securities law discourages individuals from purchasing local business stocks, and issuing stock is tricky for a small business; nonetheless, Shuman argues, the potential exists. Some local stock issues have already been successful, and states can help by revising securities laws. There are a few hurdles to overcome, but local stock exchanges offer the opportunity to help build local living economies.