The New Capitalist Manifesto: Building a Disruptively Better Business

Twentieth-century capitalism’s cornerstones shift costs to and borrow benefits from people, communities, society, the natural world, or future generations.

The financial cost of capital falls economically short of the full-spectrum cost of capital. The full-spectrum cost of capital exceeds the cost of financial capital because it factors in the many different kinds of capital utilized in production—natural capital, social capital, and human capital, to name just a few. It factors in returns to holders

“Disrupt yourself before someone else comes along and does it. Everyone says someone will come along and replace Google. We think it should be Google.” Now that’s the beating heart of a resilient organization.

Constructive capitalism’s better definition of efficiency is socio-efficiency. It means minimizing all the costs that production incurs, whether they are the orthodox costs directly accounted for by industrial era business or less visible costs to society, communities, the environment, and people.

a new kind of scale economy for the twenty-first century: economies of cycle. The more intensely, frequently, and durably that resources can be cycled, the more average costs drop, because each cycle amortizes and offsets the fixed costs of production, like plants, property, and people.

Competitive strategies say, “Here’s how we’ll get people to buy our stuff, no matter what.” A philosophy says, “Here’s how we’ll make stuff people want to buy, no matter what.”

Voting is the most brittle kind of democracy, built on the tiniest kind of conversation, because it limits a voice to a vote.

Value cycles add four novel segments to value chains to reconfigure them cyclically:

The five cornerstones we ultimately distilled are so familiar to CEOs and clerks alike that they are invisible fixtures of everyday economic life: value chains as the means of production, value propositions as the means of positioning, strategy as the means of competition, protecting marketplaces as the means of advantage, and inert, fixed goods as