Corporate Finance Review, January/February 2015
9 Pages Posted: 15 Jun 2015 Last revised: 2 Jul 2015
Date Written: January 31, 2015
Socioeconomic reconfiguration in this article seeks to address how the habit of innovation energized the capital markets more than a century ago and how after 15 years into the Twenty First Century, a resurgence in innovation is necessary in the capital markets given the existential crisis embroiling finance. Fusing together policy reform such as the Jumpstart Our Business Startups Act (“JOBS Act, 2012”), Web 3.0 and finance will ignite a third economic revolution while also democratizing the capital markets.
The reader is taken on a journey to explore how behavioral norms are rapidly shifting as changes in the guard occur with a new generation, a new investor class and new asset classes spawn.
It is clear that governments are increasingly devolving financial responsibility for life-changing decisions such as education and retirement for individuals. Therefore, a reasonable approach to achieving economic sustainability lies in creating a nearly frictionless society that leaves future generations with as many (or more) opportunities as we had.
The economic potential inherent in digital finance which spans across a multitude of platforms include peer-to-peer lending (marketplace lending), equity and debt based crowdfunding, Block chain [Bitcoin], Ven and advancements in reforming the education system is shifting cultural behavior as it relates to entrepreneurship, investing, and job creation.
Where temporary defeat exists, there is unborn opportunity. The millennial generation should embrace that value is shifting to knowledge and that knowledge workers are the new means of production. It then follows that the social network is the new production line. Embedded in these new social behaviors is entrepreneurship, and it is proving to be a string in the DNA of many wealth creators, lending itself to the democratization of access to capital as we push toward economic equality.
Keywords: economic, alternative finance, regulatory reform, JOBS Act, Socio economics, Capital Markets
JEL Classification: A10, A11, A12, A14, A19, D10, D12, D19, D31, D43, D41, D63, D92, E22, E24, F43, G18, G38
Suggested Citation: Suggested Citation