Introduction

Most private wealth is owned by a fraction of the population, prompting one wag to lament that the trouble with capitalism is that it does not create enough capitalists (Gates, 1998). How can a genuinely popular form of capitalism be created? Inheritance tax (IHT) is clearly an important tool. But in this chapter I argue that we should also look to a more imaginative and equitable management of what I call ‘common assets’ as a route to greater equality.

Common assets are a class of resources that have been created collectively or naturally, and so, morally speaking, are the property of all citizens collectively. Many are now being privatised by business or mismanaged by government, or both. If new revenues could be drawn from these common assets, they could generate new streams of nonwage income for the average citizen. The funds would improve the economic security of millions of citizens and reduce gross inequalities of wealth.

This chapter elaborates both the basic idea of common assets and the mechanisms to manage them to benefit the ordinary citizen. I argue that the preeminent mechanism for using and preserving common assets is the trust. The corporation competing in the market tends to favour short-term, economic exploitation of resources. Government tends to have its own political and financial limitations as a steward of common assets. By contrast, the trust is a time-tested legal mechanism for assuring that the interests of beneficiaries are adequately protected. It should be adapted and expanded to serve the commons. The commons is a generic term that refers to creations of nature and society. They are freely inherited, collectively used and shared, and held in trust for future generations. Many of these are natural resources such as the atmosphere, agricultural seeds, fresh water supplies, wildlife, ecosystems and the humane genome. Other commons are socially created resources such as national parks, academic communities and public spaces.

While any innovations in the use of common assets will require some leaps into the novel and untested, there are many compelling precedents and models that can be built upon.

The importance of common assets

Politicians and economists have long assumed that there are really only two sectors of power and value: markets and the state. Markets are supposed to be the vehicle for economic progress while government is supposed to take care of everything else.