Rethinking Incentives: A New Path to Economic Sustainability

In the modern American economy, incentives are structured almost exclusively around maximizing profit. Corporate executives answer to shareholders, whose primary concern is ever-increasing quarterly earnings. This hypercapitalist model, where money is the sole metric of success, has led to systemic issues: housing unaffordability, exploitative labor practices, and a general deterioration of community and trust. The recent shooting of a healthcare executive, an act of violence seemingly motivated by frustration with the medical-industrial complex, is an extreme but telling example of how profit-at-all-costs breeds discontent.

But this isn’t limited to corporate America. Housing has become an investment vehicle rather than a fundamental human need. Developers, landlords, and financial institutions benefit from scarcity and rising property values, leaving homeownership out of reach for many. The same dynamic exists in other industries, where businesses are structured around extracting the highest possible profits rather than serving the communities they operate within. Healthcare, for instance, has transformed into a labyrinth of bureaucracy and inflated pricing, where life-saving drugs and essential procedures are priced beyond reach for many individuals. Similarly, education has become an industry where students are saddled with insurmountable debt before even stepping into the workforce.

An alternative model could introduce businesses structured around mutual benefit rather than pure profit extraction. A community-owned car repair shop, for example, could be founded by a group of citizens pooling their money to establish and maintain the business. Unlike traditional businesses where profit maximization leads to inflated prices, the goal here would simply be to fix cars at a fair and sustainable cost. The community would hire a head mechanic, asking what salary would be reasonable—perhaps $150,000 per year—and distribute the costs among members. Without the need to extract excessive profit, repair costs would be significantly lower than those charged by private repair shops, making car maintenance more affordable for the community while ensuring quality service. The shop would still compete in the market, maintaining efficiency and quality, but without the steep markups seen in privately owned businesses. Instead of customers being viewed solely as revenue sources, they become invested members of a system built on trust, fair pricing, and long-term sustainability.

This model is not meant to replace private enterprise but to complement it, creating a healthier balance in the economy. A locally owned grocery store could provide quality food at near-wholesale prices by operating on a cooperative basis, reducing costs for consumers while ensuring fair wages for employees. Housing could be made more accessible through community land trusts, ensuring affordability by removing speculative investors from the equation while still allowing for competitive private markets. A healthcare clinic, owned by the patients it serves, could function on a cost-based model rather than a profit-driven one, making essential services more accessible without eliminating private healthcare options. Community banking initiatives, structured as nonprofit financial institutions, could provide fair lending practices without predatory interest rates, ensuring that local economies thrive instead of being drained by large corporate financial institutions. Education, too, could see transformation by shifting away from the for-profit model and fostering community-backed schools that focus on learning rather than generating revenue.

By shifting incentives away from pure financial gain and toward sustainability and collective well-being, communities could become more self-sufficient and resilient. Local ownership fosters accountability, ensuring that businesses remain aligned with the needs of their customers rather than distant shareholders. Workers would no longer be squeezed for maximum productivity to satisfy corporate earnings reports but instead treated as valuable contributors to a shared effort. The focus of these enterprises would be on providing essential services and reinvesting into the local economy, rather than on feeding a system of endless accumulation at the expense of human dignity.

The resistance to such a system often comes from those who benefit most from the status quo, who argue that the profit motive is the only true driver of innovation and efficiency. But history suggests otherwise. Throughout the world, successful cooperative models and community-driven initiatives have existed for centuries, proving that alternative economic structures can flourish alongside private enterprise. The challenge lies in recognizing the limits of the current system and embracing alternatives that balance profit with service and sustainability. A cultural shift in attitudes about success and ownership can create a more stable, equitable economic landscape—one where incentives are designed not just for the accumulation of wealth, but for the betterment of society as a whole.