The Next Age of American Capitalism

AI and Donald Trump

Good Morning!

In my Reading Reflection post, I teased a future piece about American Capitalism; well, it’s out, but over at The Vital Center. You can read it here.

The main idea of the piece is about creating localized capital markets where small businesses can raise equity locally by getting residents to invest. A friend read it and asked me what policies could make it happen. My answer was none.

I don’t think policy is required at the outset. This is something citizens can begin doing now, using existing law. Communities already have the legal tools to form cooperatives, community investment funds, or regulated crowdfunding entities. Some of these entities already exist, but not at the community level. This makes the first step organizational, not legislative.

A community can come together and pool modest amounts of capital to invest in small, productive local businesses—the kinds of businesses that already generate steady cash flow but struggle to scale. A good example is plumbing. In many places, plumbing companies appear local, but they’ve been quietly nationalized. They operate under familiar names, yet decisions are made by distant corporate offices. This has changed how the work is done, often to the frustration of both customers and employees.

Many skilled plumbers leave these firms to start their own businesses because they want to serve clients better and regain independence. The problem isn’t demand—it’s capital. Without access to startup equity, they can’t hire employees, buy equipment, or grow. As a result, they remain one-person or two-person operations.

That’s not unusual. About 49% of small businesses in the United States have just one to four workers, and many are effectively self-employed. Part of this is ambition, part regulation, and part a lack of capital. Blue-collar service businesses are often dismissed as “boring” because they don’t sell the flashy new product, but they are high-revenue and provide essential services. As a result, they generate predictable income and could pay dividends relatively quickly.

Localized capital markets would allow communities to invest in exactly these kinds of firms—helping them grow, create jobs, and keep ownership rooted locally. Communities need trusted businesses that can service their basic needs, and businesses need capital to scale. Creating a circulation of wealth will increase consumer confidence and grow the local economy as the employees and businesses reinvest in the local market. No sweeping new policy is required to start. What’s needed first is coordination, trust, and ambition to be bold.

Also, while I am here, I have had two other articles published in the past weeks that I’d like to share with you. In The Hill, I wrote about AI bringing about a four-day work week rather than the end of the world, and in Real Clear Politics, I wrote that if Republicans want to win in the midterms, they need to lean on their biggest box-office draw, Donald Trump.

Make sure you subscribe to keep up to date. 2026 is going to be a big year. I will be sharing some exciting news about the No Cap Fund in the upcoming weeks.

Peace & Love,

Jeff Mayhugh