Capitalism 2.0 Let’s Define Our Future            Sramana Mitra, Founder, One Million by One Million
Value-Creatorsvs. Speculators          Compensation           Brain Drain  Lopsided Incentive Structure
MIT Computer Scientist as Wall Street Quant   Wastage of an MIT Education
Speculators HaveHijacked Capitalism         Recurring Bubbles     Colossal Human Suffering        Zero Value Creation
Speculators MakeMoney Either WayWhen Value Gets Created, AND  When Value Gets Destroyed
Value Creation vs. Value Destruction    Is Short-selling Necessary?     Why Isn’t a P&L Adequate?
Credit & LeverageLiving Beyond One’s Means Has Become A Virtue  Long-term Credit-fueled Growth in America
Chronic Consumption         Fueled by CreditHousehold Balance Sheets Are Scary
Possible, Because   Credit Was Available EasilyOffered To Undeserving Consumers
Obsession With Home     Ownership Whether One Can Afford It Or Not        A Cultural Problem
Human Beings Need  Food & Shelter Home Ownership is NOT a Right     It Needs to be Earned
Enter SpeculatorsCDS, Derivatives, and a Colossal Mess       => 2008 Financial Crisis
Fortune at the Top   of the Pyramid   Largely Dominated by Hedge Funds,Private Equity, and Some Entrepreneurs
No One Begrudges AValue Creator’s Fortune  Steve Jobs, Mark Zuckerberg, Bill Gates, Larry Page, SergeiBrin, Jeff Bezos are...
The Value Creator’s    Path is Hard   Makes Money ONLY When Value Is Created               No Short-Selling      Risk, Sac...
Massive InfantEntrepreneur Mortality  Over 600,000 companies go out of   business in America every year
In Contrast, Speculators    Gamble With Other      People’s MoneyAt Worst,Socialized Risk, Privatized Gain
How Do We Change     This System?How Do We Marginalize The Speculators?
Capitalism 2.0Distributed, Democratic Capitalism
Primary TransactionBetween Producer and   Creator of Value   Financeer is Optional
Notion Of Exit  Unnecessary          Private Companies Out of the reach of the Speculators
If Financeer is        Involved,use Dividends, not Exits     The companies stay private  Outside the reach of speculators
Investors AreCompany BuildersOften Owner Owned and Operated
Increase the pool of    private SMEsEducate them to succeed, sustain, grow
Reduce 600,000 per  year US mortalityNeed education, mentoring, incubation
Expand Global SME         PoolInject education, mentoring, incubation
Entrepreneurship   Education: KeyNeeds to be scalable and distributed
Only Solution for a     Massively Scalable     System: TechnologyOnline education, affordable even for young students and ...
Emphasis on   BootstrappingLean, Capital Efficient Startups
Prevailing Myth:Entrepreneurship =     Financing  Needs to be corrected
Entrepreneurship =Customers + Revenues +        Profits    Financing is Optional
Many more $5M, $10M,$20M Ideas than $500M or   Billion dollar ones     Worth building private companiesEspecially, if you ...
1 Million Entrepreneurs$1 Million+ Revenue Each              1M by 1M          10 million+ Jobs       $1 Trillion Global GDP
Virtual Entrepreneurship   MBA for $1000 / yr   Curriculum, Virtual Incubator, Online Mentoring,Business Development, Fina...
http://1m1m.sramanamitra.com1M/1M: A Framework For Capitalism 2.0
100th 1M/1M FREERoundtable on Oct 6th                  Over 7000 registrants over 3 years                    Coached over ...
Role of the Government  in Capitalism 2.0       Is it Needed?
Integrity Isn’t         ImplicitGreed rules, and needs to be kept in check
Regulation is              Necessarye.g. Banks need to have higher reserve ratio to avoid too big         to fail situatio...
What About Benefits? Welfare Economic is Unsustainable Europe’s Crisis is a good example
Safety-Nets, PublicGoods & Defense Need to  be Financed Somehow     Taxes are necessary
Capitalism 2.0:     Tax PolicyIntroduce Speculation TaxIntroduce Entrepreneur’s 401KReduce Corporate Tax Rates to under10%...
Capitalism 2.0:  Spending PolicyWelfare & Entitlements, especiallyunemployment benefits need to beswapped with service req...
Retraining MUST Include     Entrepreneurship         EducationCommunity Colleges can offer 1M/1M or similar
5 Billion People onthe Internet by 2020Massive opportunity for value and wealth creation through            entrepreneursh...
Let’s Use This     Opportunity andEstablish Capitalism 2.0Free the world from the clutches of the speculators
http://1m1m.sramanamitra.com1M/1M: A Framework For Capitalism 2.0              1M Entrepreneurs            $1M+ in Revenue...
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Capitalism 2.0

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  • Capitalism 2.0

    1. Capitalism 2.0 Let’s Define Our Future Sramana Mitra, Founder, One Million by One Million
    2. Value-Creatorsvs. Speculators Compensation Brain Drain Lopsided Incentive Structure
    3. MIT Computer Scientist as Wall Street Quant Wastage of an MIT Education
    4. Speculators HaveHijacked Capitalism Recurring Bubbles Colossal Human Suffering Zero Value Creation
    5. Speculators MakeMoney Either WayWhen Value Gets Created, AND When Value Gets Destroyed
    6. Value Creation vs. Value Destruction Is Short-selling Necessary? Why Isn’t a P&L Adequate?
    7. Credit & LeverageLiving Beyond One’s Means Has Become A Virtue Long-term Credit-fueled Growth in America
    8. Chronic Consumption Fueled by CreditHousehold Balance Sheets Are Scary
    9. Possible, Because Credit Was Available EasilyOffered To Undeserving Consumers
    10. Obsession With Home Ownership Whether One Can Afford It Or Not A Cultural Problem
    11. Human Beings Need Food & Shelter Home Ownership is NOT a Right It Needs to be Earned
    12. Enter SpeculatorsCDS, Derivatives, and a Colossal Mess => 2008 Financial Crisis
    13. Fortune at the Top of the Pyramid Largely Dominated by Hedge Funds,Private Equity, and Some Entrepreneurs
    14. No One Begrudges AValue Creator’s Fortune Steve Jobs, Mark Zuckerberg, Bill Gates, Larry Page, SergeiBrin, Jeff Bezos are celebrated; they have created industries, jobs, technologies, new ways of experiencing the world
    15. The Value Creator’s Path is Hard Makes Money ONLY When Value Is Created No Short-Selling Risk, Sacrifice, Huge Uncertainty
    16. Massive InfantEntrepreneur Mortality Over 600,000 companies go out of business in America every year
    17. In Contrast, Speculators Gamble With Other People’s MoneyAt Worst,Socialized Risk, Privatized Gain
    18. How Do We Change This System?How Do We Marginalize The Speculators?
    19. Capitalism 2.0Distributed, Democratic Capitalism
    20. Primary TransactionBetween Producer and Creator of Value Financeer is Optional
    21. Notion Of Exit Unnecessary Private Companies Out of the reach of the Speculators
    22. If Financeer is Involved,use Dividends, not Exits The companies stay private Outside the reach of speculators
    23. Investors AreCompany BuildersOften Owner Owned and Operated
    24. Increase the pool of private SMEsEducate them to succeed, sustain, grow
    25. Reduce 600,000 per year US mortalityNeed education, mentoring, incubation
    26. Expand Global SME PoolInject education, mentoring, incubation
    27. Entrepreneurship Education: KeyNeeds to be scalable and distributed
    28. Only Solution for a Massively Scalable System: TechnologyOnline education, affordable even for young students and emerging market entrepreneurs
    29. Emphasis on BootstrappingLean, Capital Efficient Startups
    30. Prevailing Myth:Entrepreneurship = Financing Needs to be corrected
    31. Entrepreneurship =Customers + Revenues + Profits Financing is Optional
    32. Many more $5M, $10M,$20M Ideas than $500M or Billion dollar ones Worth building private companiesEspecially, if you own a significant chunk
    33. 1 Million Entrepreneurs$1 Million+ Revenue Each 1M by 1M 10 million+ Jobs $1 Trillion Global GDP
    34. Virtual Entrepreneurship MBA for $1000 / yr Curriculum, Virtual Incubator, Online Mentoring,Business Development, Financing, Media & Analyst Reach
    35. http://1m1m.sramanamitra.com1M/1M: A Framework For Capitalism 2.0
    36. 100th 1M/1M FREERoundtable on Oct 6th Over 7000 registrants over 3 years Coached over 400 entrepreneurs Premium program launched in November 2010 A Group of Premium members will tell their stories at 100th meet
    37. Role of the Government in Capitalism 2.0 Is it Needed?
    38. Integrity Isn’t ImplicitGreed rules, and needs to be kept in check
    39. Regulation is Necessarye.g. Banks need to have higher reserve ratio to avoid too big to fail situations; risk needs to be managed
    40. What About Benefits? Welfare Economic is Unsustainable Europe’s Crisis is a good example
    41. Safety-Nets, PublicGoods & Defense Need to be Financed Somehow Taxes are necessary
    42. Capitalism 2.0: Tax PolicyIntroduce Speculation TaxIntroduce Entrepreneur’s 401KReduce Corporate Tax Rates to under10% from current 35%Eliminate Payroll TaxesIntroduce Consumption Tax (VAT)
    43. Capitalism 2.0: Spending PolicyWelfare & Entitlements, especiallyunemployment benefits need to beswapped with service requirementsPeople should not get paid to sit athomeRetraining should be compulsory
    44. Retraining MUST Include Entrepreneurship EducationCommunity Colleges can offer 1M/1M or similar
    45. 5 Billion People onthe Internet by 2020Massive opportunity for value and wealth creation through entrepreneurship on a global scale
    46. Let’s Use This Opportunity andEstablish Capitalism 2.0Free the world from the clutches of the speculators
    47. http://1m1m.sramanamitra.com1M/1M: A Framework For Capitalism 2.0 1M Entrepreneurs $1M+ in Revenue Each 10 million+ Jobs $1 Trillion Global GDP

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