Government leadership is necessary to overcome the continued concentration of productive capital ownership in the 1 percent. A new government corporation, the Capital Diffusion Reinsurance Corporation, is one entity that can use the power o…f the Federal Reserve to guarantee loans for the acquisition of capital ownership by the 99 percent with payback of the loan provided by the earnings of the capital assets over a reasonable period of time––say 5 to 7 years. Small start-up companies will continue to be driven by entrepreneurial efforts and will continue to use venture capital and debt financing. But once they attain IPO status and are determined to be stable and low risk, then their future growth should be financed so as to broadened ownership among their employees and non-employees with Capital Diffusion Reinsurance Corporation security backing. ESOPs are structured variously, but there are over 11,000 ESOPs with 1,500 of them majority employee owned. The alternatives are grim, either further concentration of capital ownership in the 1 percent or redistribution of capital worker incomes to the 99 percent in order to provide subsistence income.
