The problem is that no matter what the New Economies Movement comes up with, Wall Street will capitalize it, commoditize it, securitize it, and sell it back to us for the price of our communities. Then they’ll build derivatives and options around it and wrap it all up in a nice hedge fund that transfers all risk back to us. The Street always wins.
So why can’t we do what Wall Street does?
At Social Flights we believe that we can provide 10,000 jobs across the United States by letting people sell options on aircraft seats.
How would this work?
The Hub and Spoke system consists of about 30 major airports in the US that act as hubs. The rest are spokes and many smaller cities are barely served at all. So unless you are flying between two hubs, you will always have to catch a connection, waste time, and incur social expenses.
For the price of a typical airport lounge bar tab, a traveler can buy an option to fly a private jet non-stop between their destinations. An option is the right without the obligation to take a position in the future. The option would be convertible, transferrable, and may even be exercised on a wide variety of schedules.
Calling all unemployed entrepreneurs
Suppose that I saw a listing on Social Flights for a private jet flight from Boise Idaho to Colorado Springs taking place in three weeks and costing 300 dollars. Since I know a lot of people in both cities, I can either use the ticket myself, or I have 3 weeks to sell it for, say, 500 dollars.
This is a bargain because there are no non-stop flights between these two cities and airline prices tend to increase as the departure date approaches. The private jet can do the trip in two hours whereas the commercial airline would take 8 or more hours. I could buy an option on that flight for, say 30 dollars and resell the ticket for a $170.00 profit. If I cannot sell the ticket, then I can use the ticket, convert it to another option, or lose my 30 dollars (just like the bar tab).
In effect, I am rewarded for my size and quality of my social network. I am rewarded for my ability to research in the Internet to find likely prospects who would seek to travel at a time savings. I am rewarded for my knowledge, associations, professional skills, and ability to analyze data and organize people. I am rewarded for finding arbitrage opportunities in an inefficient industry. I buy low and sell high – I am a Capitalist
While this may not seem like a large impact, if 5000 – 10,000 people make their living trading Social Options, the market will shift. If Social Options can be created for aviation inventory, they can be created for all inventory. For the exact same effect as a Groupon, people can trade options on goods and services while hedging against Wall Street and restoring community Values.