One other problem: when co-ops succeed, they often hire new workers for wages, in effect, transforming the co-op into a capitalist operation.
On Thu, Dec 15, 2011 at 8:49 AM, Jim Devine <[email protected]> wrote: > some points about worker coops: > > 1) bankers don't like to finance worker-owned firms (for which the > availability of credit is crucial), though they become more willing to > lend to the extent that such firms act like capitalist ones. > > 2) competition with capitalist firms in product markets also tends to > drive worker-owned firms under -- or drive them to emulate capitalist > ones. Though a lot of data suggests that worker-owned firms produce > more of their products per hour of labor than do capitalist ones > producing the same product, the latter often have advantages due to > diversification (producing several things), having marketing networks, > and greater access to credit. Old-fashioned economies of scale also > help larger factories or workplaces, which become hard to run > democratically, as worker-owned firms are supposed to be. > > 3) a worker-owned firm can be like a college fraternity or a craft > union, paying no attention to (or even looking down on) outsiders, > excluding non-members from employment (or hiring them as non-members > with fewer privileges and lower wages). This kind of organization may > also dump costs (pollution) on others and the natural environment. > Though democracy is great for those who can vote, those who are > excluded often don't feel the same way. > > Just as with capitalist firms (under a successful system of social > democracy), worker-owned firms need a much larger social system of > regulation. I can see worker coops as part of a larger socialist > system. > >>In Indiana, the Republican state treasurer, Richard Mourdock, is using state >>deposits to lower interest costs to employee-owned companies, a precedent >>others states could easily follow. < > > in a time when state governments are cutting back like crazy due to > budget woes? > > -- > Jim Devine / "In an ugly and unhappy world the richest man can > purchase nothing but ugliness and unhappiness." -- George Bernard Shaw > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l -- Michael Perelman Economics Department California State University Chico, CA 95929 530 898 5321 fax 530 898 5901 http://michaelperelman.wordpress.com _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
