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Lunch » Tags » Economics » Reviews » Local Dollars, Local Sense: How To Shift Your Money from Wall Street to Main Street and Achieve Real Prosperity » User review

Helps keep your money in your town-where it belongs

  • Mar 14, 2013
Rating:
+4
A good way to achieve real prosperity in America is to invest money in local businesses, instead of the multi-national conglomerates of this world. This book shows some ways to do it.

First of all, forget about the usual method, that of buying shares in a local store. The vast majority of investors are "unaccredited," and for a local store to legally offer shares to the public requires an accountant, a lawyer, and several thousand dollars in expenses. A way around that is for the business owner to, for instance, offer a $100 gift card for sale to the public. The buyer then gets $125 in goods or services on that card. The business owner gets extra money coming in, and the customer gets something extra for their "investment."

The average Mega-Bank is getting less and less interested in approving a loan for someone who wants to start a business. They would much rather put their money in a higher-risk investment that offers a higher rate of return (credit default swaps, anyone?). Depositors should consider moving their money to a community bank or credit union, which is where loan-seekers should go for a loan. These are institutions where the head office is in your town, or a neighboring town, instead of a neighboring stsate. They will be much more interested in helping local businesses, and treating depositors and loan seekers as more than just a number.

Consider resurrecting regional stock exchanges, which would trade only companies from that state or region. Consider changing the SEC (Securities and Exchange Commission) rules, to make it easier for smaller companies to sell shares to the public, and make it easier for the average person to buy those shares. If you do nothing else, invest in yourself. Pay off your credit cards, pay down your mortgage as fast as possible, consider going (or going back) to school, to increase your available skills as much as possible, and consider a DIY retirement fund.

This will certainly change perceptions about finance. It is easy to read, and gives a number of ways to keep your money in your town (where it belongs).

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March 18, 2013
These all sound like great ideas. I buy locally too!
 
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More Local Dollars, Local Sense: Ho... reviews
review by . July 10, 2012
posted in Public Policy
"For eight decades Americans have endured a system that all but banned 98 percent of us from investing in the local half of the economy. Few of us even noticed, let alone judged it an abomination. Why did it matter that our life savings went exclusively into global business while our communities fell apart?.......The wall cutting off 98 percent of the U.S. public from the other half of the economy needs to be torn down if we ever wish to restore economic viability to our communities." …
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Paul Lappen ()
Ranked #68
I am in my early 50s, single and live in Connecticut. I am a lifelong very, very avid reader and am a freelance book reviewer with my ownblog (http://www.deadtreesreview.blogspot.com). Please visit. It … more
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Wiki

Americans' long-term savings in stocks, bonds, mutual funds, pension funds, and life insurance funds total about $30 trillion. But not even 1 percent of these savings touch local small business-even though roughly half the jobs and the output in the private economy come from them. So, how can people increasingly concerned with the poor returns from Wall Street and the devastating impact of global companies on their communities invest in Main Street?

In Local Dollars, Local Sense, local economy pioneer Michael Shuman shows investors, including the nearly 99% who are unaccredited, how to put their money into building local businesses and resilient regional economies-and profit in the process. A revolutionary toolbox for social change, written with compelling personal stories, the book delivers the most thorough overview available of local investment options, explains the obstacles, and profiles investors who have paved the way. Shuman demystifies the growing realm of local investment choices-from institutional lending to investment clubs and networks, local investment funds, community ownership, direct public offerings, local stock exchanges, crowdfunding, and more. He also guides readers through the lucrative opportunities to invest locally in their homes, energy efficiency, and themselves.

A rich resource for both investors and the entrepreneurs they want to support, Local Dollars, Local Sense eloquently shows how to truly protect your financial future--and your ...

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Tags

Book, Economics, Business & Investing, Development & Growth

Details

ISBN-10: 1603583432
ISBN-13: 978-1603583435
Genre: Business & Investing
Publisher: Chelsea Green Publishing
Date Published: February 20, 2012
Format: Paperback
First to Review
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