Main Street Markets vs Wall Street Capitalism
Wall Street and Main Street are metaphors now in common use to distinguish between two sharply contrasting economic models with sharply contrasting priorities, values, institutions, and interests.
Main Street refers to local economies comprised of entrepreneurial local businesses and working people engaged in producing real goods and services to provide a livelihood for themselves, their families, and communities. Much like the diverse species of a healthy ecosystem, Main Street enterprises vary in their priorities and values. Their legal forms range from sole proprietorships and family businesses to cooperatives, worker and community owned corporations, and nonprofits. Generally, however, they share in common a commitment to creating meaningful livelihoods and contributing to the well-being of the community in which they are located. Profit is more a means more than end.
The Wall Street capitalist economy is comprised of the institutions of big finance and the captive corporations that serve them. It is a world of pure finance and maximizing financial return is the name of the game. They may or may not contribute to the creation of useful goods and services, but these are more in the nature of incidental byproducts of their profit seeking.
The Wall Street economy, which is centrally planned and managed by a global syndicate of global corporations that hold a collective monopoly over the world's money, markets, and technology for the exclusive benefit of their managers and financiers, persistently violates market rules. It bears substantial resemblance to the central planning model of Soviet communism. By contrast, Main Street economies, are decentralized, self-organizing, and far more likely to function by market rules. Defining differences between Wall Street and Main Street are summarized in this table.
| Wall Street Economy | Main Street Economy |
Dominant driver | Making money | Creating livelihoods |
Defining activity | Using money to make money for those who have money | Employing available resources to meet the needs of the community |
Firm size | Very large | Small and medium |
Costs | Externalized to the public | Internalized by the user |
Ownership | Impersonal and absentee | Personal and rooted |
Financial capital | Global with no borders | Local/national with clear borders |
Purpose of investment | Maximize private profit | Increase beneficial output |
The role of profit | An end to be maximized | A means to sustain viability |
Efficiency measure | Returns to financial capital | Returns to living capital |
Coordinating mechanisms | Centrally planned by megacorporations | Self-organizing markets and networks |
Cooperation | Can occur among competitors to escape the discipline of competition | Occurs among people and communities to advance the common good |
Purpose of competition | Eliminates the unfit | Stimulates efficiency and innovation |
Government role | Protect the interests of property | Advance the human interest |
Trade | Free and unregulated | Fair and balanced |
Political orientation | A democracy of dollars | A democracy of persons |