A business needs to borrow $2 billion dollars -- are you going to crowd fund that?
A state government wants to borrow $800 million in bonds for a new arena, can you GoFund that?
> A state government wants to borrow $800 million in bonds for a new arena, can you GoFund that?
say you have an arena that holds 50,000 people, sell the right to name a seat for $100, and the right to choose an image to put on the seat for $1,000. That's 5,000,0000 in naming rights on the seats, and 50 million for the images on the seats.
Charge more for putting an image on contiguous seats - if you want n seats in a row, that's $1000 *n^2. They always end up selling naming rights to these things anyways, why not just have images in the seats be ads or pictures of loved ones or whatever?
Sell colored tiles in the bathrooms and even things like the color of a single screw for $10. sell the names of the concession stands and the names of urinals on the bathroom and the pictures on the bathroom stalls.
But who needs a fancy, multicolored stadium named after and showing the character, images and pictures of the people and brands from the city when you could have a big bland boxy thing named after a large company, and then 30 years of bonds to pay it off, right?
I mean, realistically you don't have to charge fans a cent. Kraft bought the Patriots a stadium in Foxborough at his personal expense: zero cost to taxpayers or subsidization from fans outside of the business he operates.
My point wasn't to find an alternative to taxpayer stadium financing as those alternatives exist today, my point was to say: If a government wants to take out a $800M loan, how do we make that happen. If an entity has a need: how do we meet that need. Merely saying "your need is invalid" is not a solution in any sense.
By trying to invalidate my use-case of an $800M loan, you side-step the actual problem: Providing a 20 year $800M loan. That's a real need in today's world. Providing a billion USD that you don't get back for multiple decades. That's a real world need that will have to be met by your future-tech. Not evaded, not made irrelevant, not ignored: but solved. How do you crowdsource finance in a way that you can take someone's money for 20 years? Because we know how traditional banks can achieve giving away billions for decades, but not how an crowdsourced futuretech solution would approach it.
Doesn't a liquid securities market imply that a lender in a 20 year loan can always sell their loan to others if they want? So there's no need to require them to provide a 20 year lockup, assuming a secondary market exists.
If the government (by US theory, this is: "the people") wants to take out a $800M loan, then, by definition, it will have no problem 'crowd-funding' it.
>If the government (by US theory, this is: "the people")
You're talking about the Federal Government, which yes can monetize debt through the Treasury and Federal Reserve by act of Congress.
However, I'm talking about State and Local governments which are unable to run deficits and unable to create treasuries to sell to the Reserve for new cash.
For all American governments EXCEPT for the Federal level, they must, like any large corporation or entity, find a lender and pay interest.
The bigger question is what happens if you don't sell at that price.
Large bond placements usually begin with testing clients' enthusiasm at specific interest rate, and then adjusting the interest rate in case of under/over-subscription.
Not saying you couldn't do that via an online auction system, it's just that cost and time it takes is usually under-estimated.
say you have an arena that holds 50,000 people, sell the right to name a seat for $100, and the right to choose an image to put on the seat for $1,000. That's 5,000,0000 in naming rights on the seats, and 50 million for the images on the seats.
Charge more for putting an image on contiguous seats - if you want n seats in a row, that's $1000 *n^2. They always end up selling naming rights to these things anyways, why not just have images in the seats be ads or pictures of loved ones or whatever?
Sell colored tiles in the bathrooms and even things like the color of a single screw for $10. sell the names of the concession stands and the names of urinals on the bathroom and the pictures on the bathroom stalls.
But who needs a fancy, multicolored stadium named after and showing the character, images and pictures of the people and brands from the city when you could have a big bland boxy thing named after a large company, and then 30 years of bonds to pay it off, right?