Our economy is at an inflection point and no one knows what to do next. In this talk, I talk about how the history of our economy and possible ways forward. There are three main themes: New forms of finance to fund pro-social projects, new methods to invest in human development, and how digital finance can help with all of it.

1. The Empowerment Economy
Nick Pinkston

2. For a long time, capitalism worked:

3. Inequality decreased for a long time:
Until Neoliberalism...

5. We’re are at an
Inflection Point

7. “Don't let a crisis
go to waste”
- Rahm Emanuel

8. So what’s our
vision of the future?

9. New Capabilities → Standard of Living Growth
The Enlightenment: Rationalism, Science & Math, Constitutionalism, Democracy
Proto-Capitalism: Joint stock companies, New Finance, Industrial Revolution
Welfare State: Public Education / pensions / healthcare
Managerial Capitalism: Scientific management, operations research, unions

10. The Empowerment Economy
Funding the Unfundable: New forms of finance to fund a
broader range of projects.
Human Capital Finance: Funding human development.
Digital Finance: Digitalization accelerates all of this.

11. How do we broadly fund more
pro-social projects?
Funding the Unfundable

12. Kickstarter: A new method of project finance

13. Social Impact Bonds

14. Emerging Forms of Finance

15. No one has a direct
incentive to improve
people’s lives.

16. How do we create incentives to
invest in people’s future?
Human Capital Finance

17. Elements of Human Capital Finance
- Income Share Agreements: Loans as % of income → Align incentives
- Human Capital Contract: Selling “stock” in yourself, but with limits
- New Employment Agencies: Between temp agency and a union
- Recruiting / Job Sites: Smooth the labor market
- Bootcamps / New Education: New forms of training to increase productivity

18. Startups in US Human Capital Services Sector
https://pitchbook.com/news/articles/vcs-ready-to-help-play-job-market-matchmaker

19. Digital Finance
Where there is risk and computability,
there is finance.
Rapidly accelerating computability is opening up
the frontiers of finance.

20. Methods of Digital Finance
• FinTech: “____ , but on the internet.” (efficiency, speed, service)++
• Data Markets: More, cheaper data to understand risk and reward
• Prediction Markets: Incentivize capture and creation of data
• Blockchain (and similar): Scalable computational finance infrastructure
• DAOs: Distributed Autonomous Organizations: Companies for computers

21. What doesn’t this solve?
● Need for Social Safety Nets
● Funding for Non Social-Productive Projects
● Government Reform

22. The Empowerment Economy
Funding the Unfundable → More Pro-Social Projects
Human Capital Finance → Personal Development
Digital Finance → Greasing the Wheels

23. Thank you!