I didn't think I needed a primer on Part 1 and 2, so I went straight to Part 3.
What seems (to me) to be lacking in the solution is accountibility. I can see too many conmen setting up "businesses" just to get money from the government. I would prefer venture capitalists or private lenders to get screwed than the government.
Anyways, I've had a new business model running through my mind for about 20 years. But nothing on paper yet. Not sure when.
In this model, there are more than shareholders getting dividends of a profitable business. Employees, customers, suppliers, and philanthropy all get a share with the investors. All the parties are connected in a more symbiotic relationship than just a buyer/seller.