Ask Prof Wolff: From Capitalism to Co-op

A Patron of Economic Update asks: "How can we make further inroads toward business conversion to the cooperative model while so many business owners look down on their workers as incompetent or unfit for “leadership” and discredit the value of their labor in their businesses’ success and prosperity? On this same note of conversion, what strategies can help us to ‘convert’ workers themselves to cooperative economics — and to ‘convert’ capitalist funding toward these same ends?"

This is Professor Richard Wolff's video response.

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“Marxism always was the critical shadow of capitalism. Their interactions changed them both. Now Marxism is once again stepping into the light as capitalism shakes from its own excesses and confronts decline.”

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Follow Wolff ONLINE:

[collybeans]

You are a very impressive human being Richard. Thank you so much for everything you do. I really appreciate it.

[GaryBetterton]

Prof Wolff You are wonderful. We must listen and start making the changes you suggest. Thank-you.

[zinaj]

Another case of "Change is hard...until not changing is harder." The "change" is about focusing on *stakeholder* concerns instead of *shareholder* concerns.

[in-cite]

Thank you for your courage and truthfulness.

[blogintonblakley]

I agree with the idea that the workplace should be democratic; however, this only addresses production, not distribution or consumption. Our main problem these days in terms of the economy is the way markets produce climate change. Democratizing the workplace doesn't address this problem directly at all.

[clarestucki]

General Motors, which was rescued from bankruptcy a few years back, is fading away again. Wolff should encourage that it convert to a "worker co-op". Good luck with that!

[chrismalcomson]

I do like the idea that the shareholders are the workers, who are given share options as part of their wages. In this way they get to vote on the direction of the company but at the same time have a professional management structure. When a business invests in itself rather than handing out the profits to external shareholders the business will become far more robust.
These days it seems most companies live off borrowing and are a couple of percentage points away from bankrupsy. Where I live many small businesses actually own the building they do business out of. This means they can survive on a very small profit margin because they don't have rent or bank loans to pay.

[daddyaf]

Ok, yeah. Now we need to prevent politicians from carrying private stock portfolios so that we can promote employee ownership that is currently being suppressed by that conflict of interest.

[burden]

Share this and work for RANKED CHOICE VOTING 🗳

[loyddussaultsr]

Bull Moose Record stores in Maine are now worker owned

[anelifloris]

We had co-op in Yugoslavia. For a while it worked really well in benefit of workers but in time showed many problems which made them insustainble

[zacharyrivera]

The danger is verbalizing your truth at these trying times. Your not alone.

[auferstandenausruinen]

Co-op in itself is still a petit-bourgeois mode of production, which only maximize the interest of the enterprise, not the entire society. It's useful when integrated into a boarder system of planning when the society is transitioning into socialism but ultimately coops will also be replaced by societal ownership of production.
Wolff's concept of using coops to outcompete capitalist firms under the same profit-driven market is more like a fantasy, because mega corporations can brutally exploit labor in the global south by utilizing the imperialist power of capitalist states. The revolution is the first priority. Seize the state apparatus, end imperialism, and use the people's government to smash the corporations instead of competing with them with 3/4 of the world population is still suffering. Co-op in this term can also be useful as a tool for spreading the idea of socialism before the revolution, but it can only do so much.

[densito]

The Workers Social Entrepreneurs with Ecological and Gender Parity responsibility of the True Democratic World are lucky to have you... Solidarity 🌳

[shawnfrey]

Hello Prof Wolff, can you please recommend a book for setting up a worker coop for a brand new enterprise?

[waynehanson]

How do you reach or awaken the conscience of the oppressors, even though they are extremely educated people ? Is there a force for battling greed ?

[alloomis]

"who decides?" said aristotle. smart guy. he nailed the key question of human societies. who's the boss?
the boss is the person with the gun. in a more generalized and larger society, who causes things to happen?
economists hate politics. powerful people or groups interfere with economists instructions, on how things should be done. politicians laugh at economists, and say, "do it my way, or i'll shoot."
there is a reason co-ops are rare and small, authoritarian businesses are intrinsically stronger. they have the law on their side. if you want a socialist economy, first you must get the gun, get a socialist political structure.
there is one, it's called 'democracy.'
until you have it, co-ops will be rare and small.

[GhostOnTheHalfShell]

ESOP was supposed to be a pathway for employees to gain a stack in their publicly traded employer. Unfortunately it never quite evolved into the original intent. Still it would be interesting for unions to push for full voting stock grants on top of pay and every other demand for a decent life. More generally, coops and larger employees stock holding may have far more effect when the only command a percentage of business. It’s quite possible 25% coops may utterly change dynamics in publicly traded companies.

[donrastar]

"Dr" Wolff a co-op seeks capital. I.E. capitalism. A coop is what you seek.

[timunderwood]

Co-ops are great sometimes. Capitalism is great sometimes. Socialism is great sometimes. You actually agree with this. Probably the biggest problem, in North America, is the taxation level is inadequate. Just focusing on co-ops is implying that work is the ultimate goal. I spent my most productive years working for a base industry, diligently reducing the amount of labor required to do the same amount of work. We were very successful. Those people in the government side of things weren't nearly as successful at redistributing the productivity of our ingenuity.