I’ve known a few in the U.S., and even worked at one. Maybe people won’t become billionaires doing this, but why wait for a complete overhaul of society to implement more of what are good ideas.
I’d also like to see more childcare co-ops, or community shared pre-k schools. Wheres the movement to build communities and pool resources around these business models in the US? In short, co-ops are the closest socialist/communist business model that’s actually implemented in the U.S., so why are more leftists not doing this?
It’s a good question OP. I think about this too.
The kind of people who would start a business (to enrich themselves) and the kind of people who value co-ops and employee-owned businesses (to enrich others) does not have much overlap. I love the idea of coops, but I do not have the skills or ambition to start any kind of business.
Human greed is the common point of failure in any of societal systems. In any system … capitalism, socialism, religious, commune, authoritarian … the common thing that holds it together is concentration of power. The problem that it suffers from is … concentration of power.
No matter what group you create, power eventually gets concentrated to smaller groups of people and it only attracts a certain group of individuals who only understand the need to want power and control over everyone and everything to the detriment of everything else.
Once we find a way to build a societal system that is able to distribute power and keep any one or group of people from dominating everyone else, then we might have a chance of developing a sustainable civilization. In the meantime, no matter what you want to call it or do with it, if the end process just concentrates power to a small group of fallible ignorant humans, nothing will ever work.
Do you think it would be viable to make it law for a business to slowly start becoming a coop once the founder had made a fixed amount of money (say, mil.s of dollars) from it?
only if it were global. otherwise those with money would start a business elsewhere.
Don’t forget money. Can’t just decide to fart out a co-op.
In short, co-ops are the closest socialist/communist business model that’s actually implemented in the U.S., so why are more leftists not doing this?
Starting a business (that is based on a sound and viable business plan that has even a snowball’s chance of surviving its formative early years) is really REALLY hard. It takes massive amounts of money or debt, the early years promise years of having no income for yourself (or paying yourself below minimum wage), it means a staggering amount of hours you need to put in to keep it going, forgoing vacations and important family events, loss of friendships because you’re having to put all your time and energy into the business without socializing, having to work when you’re incredibly ill, incredible amounts of stress (which increases by 10 times when you have employees that now depend on you for their livelihood) and even if you do everything perfect your business can fail leaving you with nothing for the years that you put into it, and potentially also with tens of thousands or millions of dollars in debt. It means many times being force to make decisions that massively affect other people’s lives (your employees or your customers). It can be versions of the Trolley Problem time and time again.
“According to the U.S. Bureau of Labor Statistics (BLS), approximately 20% of new businesses fail during the first two years of being open, 45% during the first five years, and 65% during the first 10 years. Only 25% of new businesses make it to 15 years or more.” source
So ask yourself if you want to go through all of that, and instead of wealth you can live on and support your family with at the end of it, you get simply a “thank you” for building a co-op.
Yes, I agree, it is very hard. I’ve talked to a lot of founders and was working on getting a company off the ground myself.
The perspective and the idea of a co-op however is completely different from what you describe: to distribute the hardships, the risks and rewards right from the start onto many shoulders. There’s no more “my company, my sacrifices” etc. It’s all we.These are great points, and looking at some of the other responses I get the sense that it’s a time and skills issue. So, what exactly do communists and socialists imagine will happen when “workers seize the means of production”?
I don’t want to discourage anyone from pursuing these ideas, I think at least in the U.S. it might be cool to have a consultancy or non-profit which helps connect such founders and provides them with education, training and startup resources.
Edit oh and some of the other points are that one wouldn’t get rich doing this. So what? I’ve already seen people look down on wealth accumulation, so I think it’s fair to say that the motives for someone who’d start such a business venture are different, which is valid and reasonable.
Secondly, I don’t think market forces will impact such businesses because if you’re creating communities around them, then people will choose what they know and trust.
These are great points, and looking at some of the other responses I get the sense that it’s a time and skills issue. So, what exactly do communists and socialists imagine will happen when “workers seize the means of production”?
I admit I’m not a scholar in this area, but my college reading of Marx and Engels they were taking about nation-state levels of “seizing the means of production”. As in, the entire nation’s ability to produce goods, grow and transport food, facilitate communications, etc. Doing so on such a grand scale that the elites/bourgeois would be forced to cede control of the levers of power because society effectively halts with the means of production in the hands of the working class (proletariat).
Marx wasn’t talking about a socialist group starting up a competing grocery store to the entrenched established players in that market space.
I don’t want to discourage anyone from pursuing these ideas, I think at least in the U.S. it might be cool to have a consultancy or non-profit which helps connect such founders and provides them with education, training and startup resources.
There are educational resources for starting non-profits organizations (and I’m assuming co-ops). The real resource any org (for-profit or nonprofit) needs to start up is: large amounts of money. In for-profit ventures (assuming your business plan is respectable) you can get bank loans or outside investors. Both of these groups expect a return on the money they’re giving you to get started up.
With a co-op, I’m guessing the only sources of startup capital are: government grants, philanthropic donations, or a founder that already has amassed their own fortune.
Edit oh and some of the other points are that one wouldn’t get rich doing this. So what?
At those really dark times for your business you ask yourself “why the hell am I even doing this?” for most business owners the answer is “so that at some point in the future my life will be much easier”. For a co-op, there has to be a very deeply held belief that what you’re doing is extremely meaningful and your sacrifice will be “worth it” somehow. While those people exist with almost a religious level of obligation to their cause or their community, I think they are extremely rare.
I don’t envy the leadership in a struggling co-op. Running an organization is hard enough at the best times as a single owner. Having to run it by committee when it is crumbling sounds like a painful death.
I’ve already seen people look down on wealth accumulation, so I think it’s fair to say that the motives for someone who’d start such a business venture are different, which is valid and reasonable.
You may already have your answer. In your first post you said: “I’d also like to see more childcare co-ops, or community shared pre-k schools.”
What is stopping you from you creating a child-care co-op?
Secondly, I don’t think market forces will impact such businesses because if you’re creating communities around them, then people will choose what they know and trust.
This is naive. Market forces (and other externalities) can have massive impacts on your organization irrespective if you’re a for-profit or co-op. Just think of what COVID did to many organizations. Though nothing change in the business model or service offering, thousands of companies went under because the conditions of the market changed through no fault of the organization owners/leaders.
I don’t know, it seems the whole argument seems to boil down to “there’s not enough time, money or skill”. I guess my question is why do ML theorists think workers can organize enough to run a state when they can’t organize enough to run a business?
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Sorry, in retrospect that was entirely too flippant and answer for a pretty good discussion and question. Deleted.
Because corporations will sweep in and take all the business by taking a loss just long enough to put the others out of business.
Because he who controls the capital, controls the legal structures of capitalism.
Aka pedons ain’t got no money, boy
This doesn’t make sense, there are people already doing this and making millions, at least.
They tend to get out competed by companies with enough investment funds to undercut them without making a profit until they have a stranglehold on the market and can jack up prices.
Why do you like chocolate?
If it’s what you want to see, then you should go do that.
Great point, I’ll take that into consideration
They don’t have access to capital (means of production). Consider the following scenario:
All of the employees at a car manufacturing plant are sick of being paid a fraction of the total sale price of the cars they make. They decide, in solidarity, to quit en masse and start a worker co-op car plant instead so that they can all enjoy sharing 100% of the profits themselves.
So they quit. Now what? Well, knowledge isn’t an issue because they already knew how to operate all the machines in a car plant. The problem is that they don’t have the money (or the land) to build a new car plant. We’re talking billions of dollars and a huge piece of land which ideally should be located on a railroad line so that parts (which are very large and heavy) can be delivered affordably by rail.
So where are they gonna get the money? Not from private investors, of course, since that nixes the worker only profit sharing arrangement. Not from banks either because these workers, while highly knowledgeable and motivated, don’t have any collateral to put up for the bank loans. The banks do not want to be in the position of repossessing a bunch of specialized manufacturing equipment and trying to resell it at a loss.
The common response to this is: the government. But think about that. Do you want your government giving billions of dollars to a few hundred people so they can start a car plant and then keep all the profits?
And they’d have to buy parts and materials from the same suppliers feeding the major automakers who have already streamlined their logistics and costs from the smelter to the finished product - and you know they’d exploit those efficiencies and supplier connections to create financial hardship on the upstart automaker. Same way airlines use fare wars to undercut competitors to pressure them out of a market.
There’s nothing the business world hates more than a well treated and well paid workforce. They’ll band together to crush the idea.
And even if you don’t need billions in startup capital for land and buildings and machinery, you’ve still got cash flow concerns.
Say you want to make software, and you know you can make it in 3 years with 20 people. What are you going to use to pay the bills until you’ve finished making whatever it is? Where are you going to find people who will go without money for that time? What if there’s no market for it by the time you’ve done?
Even something very simple like a coffee shop is difficult to run as a co-op.
Yes, if you have a few friends who are all passionate about coffee it’s possible for you all to get loans / mortgages to pool together enough money to buy/lease a small commercial property and open a coffee shop together. The only really significant pieces of equipment are the espresso machine and coffee grinder, both of which can be bought used for a few thousand dollars.
But here comes the issue: suppose it’s you and 4 friends who started the coffee co-op with $200k each (total $1 million) to buy the real estate and all of the furniture and machinery. Now the 5 of you work in the coffee shop and it starts growing more successful so that you need to hire more baristas (or pastry chefs or sandwich artists) to work there. How many baristas can you find who can afford to put up $200k to buy into a share of the co-op?
Or even more fundamentally: what if 2 out of the starting 5 decide that working in a coffee shop is too exhausting and they don’t want to do it anymore so they quit? Now the other 3 need to put together a total of $400k to buy them out? Or do you have a clause in the contract which says they forfeit their investment if they quit? Now I dunno about you, but as much as I love using my espresso machine I would never want to enter a contract like that! I’d much rather keep my $200k in the bank and work as a regular employee barista knowing I could quit any time I want.
If I share profits, then how do I, a lowly CEO, keep all of the profits for myself?
co-ops don’t get loans. It’s hard to start a business without loans.
Loans are also the reason houses are usually so expensive.
Lots of people have ideas, few people actually want to implement ideas. This is why there’s more workers than business owners.
Rei says it’s a coop.
a union busting so-called that, at that.
It’s a consumer co-op (barely) not an worker co-op.
I can’t afford it and it’s hard to get people to agree on things, especially where their money is concerned.
That’s what public companies are. You buy their shares to help out with business and they share their profits. How much more of them do you want?
No, public companies and cooperatives are completely different things
The investors is not who they’re talking about sharing profits with
No, they’re not different. If you’re creating a co-op - your partners are still shareholders and investors. The only difference is that co-op is private, but public company is… Well, public. But the end result is the same.
Capitalism and socialism are the same thing.
You should probably ask more questions and make less statements.
This is some ignorant shit
We have different company styles here (Swiss, but Germany, Austria, France similiar).
From the name: there was this company i worked in, it had a pool of investment money with other companies together. Another one, that makes accounting & finances, projects, with companies under their wing.
Is it something like that?
