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Mondragon as the new city-state

elysian.press

101–110 of 372 posts

Re: Mondragon as the new city-state

#101
post #88

Earlier quoted context omitted.

It seems a bit premature to speak so generally about collectivism. It's quite possible that the USSR failed for reasons that do not apply to Mondragon. Maybe once we've seen a few hundred of these come and go it'll be time for a general theory of their kind.

>It seems a bit premature to speak so generally about collectivism 2B people spent better part of 20th century doing the experiments, killing tens of millions of those who didn’t completely shared the ideas of the collective, and you think it is premature? General theory is in the Das Kapital. So far the things have worked as described. People by mistake ascribe happiness to the outcomes calculated there while there…

Wasn't the USSR quite open about not being communist and at best working towards "socialism" as a pathway towards communism?

Surely the USSR is an example of the pigs pulling a bait and switch rather than communism.

The failure of the USSR to achieve communism is a side show to all the variations on worker | producer collectives that didn't fall to Stalinism.

Re: Mondragon as the new city-state

#102
post #77
post #59

Earlier quoted context omitted.

He's a Marxist and believes in Marx's labor theory of value. https://en.wikipedia.org/wiki/Labor_theory_of_value As wikipedia says, "modern mainstream economics rejects the LTV" (for very good reasons). It leads to some pretty obvious absurdities if you take it seriously. For example, 10,000 people digging holes should be more "valuable" than one guy designing a microchip, because hey! The holes take more labor.

> "modern mainstream economics ..." It would be more accurate to say "modern mainstream economists ". To say "economics" here is a real failure on Wikipedia's moderation. Because what they're actually talking about, is the Austrian School of Economics [1]: > The Austrian school is a heterodox[1][2][3] school of economic thought that advocates strict adherence to methodological individualism, "Individualism" is the ke…

Look. The LTV has been rejected by mainstream economists. And this has nothing to do with Austrian economics (which has also been rejected by mainstream economists, for different reasons.) Now of course, you may choose to disagree, and say they're all wrong! But that's the current academic consensus.

  That's an asinine example. I mean what hole are they digging? If it's
  the Panama Canal, that's pretty valuable.
It might be more valuable if they used construction equipment to dig it, rather than shovels. But that would mean acknowledging that "value" is different from "labor cost," which apparently is impossible for you.

Re: Mondragon as the new city-state

#103
post #94

Earlier quoted context omitted.

I'm not a finance person, but my understanding is that co-ops more often raise capital with traditional loans. While I believe you are correct that co-ops are not a great fit for the growth business strategy that VCs make their bread and butter on, I believe that on many metrics co-ops tend to be more sustainable than the corporate alternatives[0]. This means they are more likely to be around tomorrow to pay off a lo…

> All this to say, it would be great to see more capital for co-ops in the form of traditional loans with favourable interest rates. Sure, that would be great. But what can govt do today to incentivize that? I'd say just relax (tax) law on w-coops to incentivize them compared to the less favorable forms of incorporation.

Especially in Canada, where capital is tight and productivity is low, I think incentivizing co-ops is a great idea.

The Canadian gov't offers some grants for co-ops, but they are a pittance. Making debt cheaper for co-ops relative to corps (maybe via additional tax breaks on interest?) is, I think super important.

Re: Mondragon as the new city-state

#104
post #51

Earlier quoted context omitted.

I think we're roughly in agreement? Any organization that arranges for its workers to govern it has some organizing document that describes this structure. Any organization that arranges for its workers to become owners must pick mechanism for this to happen. My view is that these can be basically independent choices: - A firm can pursue a profit-sharing-for-current-workers approach as described for Mondragon, or can…

Cooperatives guarantee that only people working in the company benefit from the profit of their own work. If one can stop working and still take a share from the profits, everyone else would have to not just work for themselves and lose part of their profit to an increasing amount of people, who are not taking part in creating that profit. Cooperative guarantee that profit is owned by the people who create it.

I think you may be too committed to dogmatic stances to constructively discuss other possibilities. I think this is no better when it's from the collectivist side than when it's from the capitalist fundamentalists.

> Cooperative guarantee that profit is owned by the people who create it.

I don't think all the value created by workers is realized as profit immediately. Workers can create value which only shows up in contributions to revenue much later. If you and your coworkers figured out the design and manufacturing process for a new product and the product only goes to market after you retired, you helped create the profits even if they arrive after you left the firm.

If the coop structure as you narrowly define it doesn't allow workers to receive the profits of their labor in industries that have a long time to market or R&D cycle, then isn't that a recipe for those high value industries to be inaccessible to coops?

Try to imagine an alternate history where Nvidia was a coop. A lot of the value behind its current high revenue was done many years ago. Cuda was released in 2007. I don't know how much of the hardware has inherited from older designs. If only current workers benefit from the current high sales, has the organization really ensured that "profit is owned by the people who create it"? That seems implausible.

Re: Mondragon as the new city-state

#105
If:

1 - Cooperatives excite you and

2 - You use social media

you might want to look at the social.coop Mastodon instance (or cosocial.ca if you're Canadian).

Not only has the community on both those sites been a breath of total fresh air for me, I am not worried about the server I'm on having decide between disappearing and selling ads, and I feel like I'm partaking in a social enterprise.

Just recently social.coop had an open vote on how to donate some of our surplus to the open software we use and organizations that promote cooperation. It's been so nice to see and be apart of.

Re: Mondragon as the new city-state

#107
post #4

There is no value without labor. This was recognized by everyone from Karl Marx to Abraham Lincoln to Adam Smith. Smith even conceded that profit was impossible if workers retain their surplus value, which is exactly the point. I bring this up because that's what capitalism is: draining the surplus labor value from workers to the capital-owning class. In feudalism, the artistocracy and th emonarchy extracted that val…

> There is no value without labor. Plausible. But there is very little value without tools. In fact, one could argue that all material progress has been in the form of better and better tools. One person with a combine beats 100 people with sickles. Those tools are necessary for almost all of the value that labor produces. So if we want those tools, in the real world we need to pay the producer of those tools. (Or ma…

> But there is very little value without tools.

Did those tools magically come into existence? Or were they made? Who made them? More workers. Where did the materials come from? More workers.

The point here is that everything we as a society do is so fundamentally interconnected that thousands of people contributed to pulling gold out of a mine, for example, both directly and through the tools that were created to make it possible then why are we concentrating the proceeds of this enterprise onto the capital owner who got a lease from the government (with the threat of violence backing it) just because they wrote a check to fund the operation?

> ... there's a third party in the situation

Yes, more products of labor.

> I can't buy "the worker deserves it all"

I don't believe you intended it this way but it reads as a false dichotomy.

I don't expect radical change in our economic system. I would be happy to see more cooperatives for housing and manufacturing (like Mondragon). This requires some class consciousness and collective action.

So much of our modern society deifies hyper-individualism. You ever wonder why that is? It's sold as "freedom" but it's really to manipulate you because there's a massive power imbalance between your employer and you. If you withhold work, most likely that employer will be fine. If that employer withholds work, you might end up homeless. The only way to counter that power imbalance is with collective action.

Modern political discourse is dominated by manufactured culture war issues. This isn't new. Post-Civil War there was fear in the South of emancipated slaves and poor white people uniting [1].

To be absolutely clear, I'm not accusing you of racism or similar. My point is to show how this is manufactured to divide workers. Even the idea of the "middle class" is intentionally divisive. Why do the interests of a white-collar (middle class) worker differ from a blue-collar (lower class) worker? Why are we making that distinction?

[1]: https://bittersoutherner.com/from-the-southern-perspective/m...

Re: Mondragon as the new city-state

#108
> Mondragon provides us with a successful, working model. It’s not throwing out capitalism, it’s creating a better form of it.

Can any people from this region tell us what the downsides of working for Mondragon are? The article only touched on lower pay.

Also how much does the President of the parent Mondragon Corp get paid? The often cited 6:1 or 9:1 lowest paid worker to CEO seems to be applied to CEOs of the various corporations not the president of the parent company.

Re: Mondragon as the new city-state

#109

The difference between Mondragon, the kibbutzim, and other successful examples of collective labor, and the Soviet system, is precisely that the former are not governments, and operate in a capitalist system of property rights and free markets (in a practical rather than spherical cow sense of that term). I'm all for more cooperatives, it's a good model. Operating in a system which doesn't compel that form of organiz…

I do feel like you've framed this as dichotomy: you either have a capitalist system or you have an autocratic centralized government.

Many socialist democrats (or democratic socialist, whatever your flavour) believe that collectivism need not be autocratic and all encompassing. The negative aspects you're describing, in my opinion, are the results of the fascistic elements of an autocratic communist regime. "The Fascist conception of the State is all-embracing..." and so on.

The liberty that open democracy promises is resistant (but not immune) to the kind of coercion you've correctly identified as being characteristic of the Soviet system.

Re: Mondragon as the new city-state

#110
post #4

There is no value without labor. This was recognized by everyone from Karl Marx to Abraham Lincoln to Adam Smith. Smith even conceded that profit was impossible if workers retain their surplus value, which is exactly the point. I bring this up because that's what capitalism is: draining the surplus labor value from workers to the capital-owning class. In feudalism, the artistocracy and th emonarchy extracted that val…

> There is no value without labor. While this is generally true, it's also not the entire equation. For example, there's no gain without risk. - When I work for someone else, I am offloading some of the risk to that person/owner. When someone starts a company and hires other people... if the company goes belly up, the founder loses their investment; the workers find another job. - When I rent from someone else, I am…

there is a risk for the worker and renter, too. and opportunity costs.

my shelter not being destroyed is extremely more important to me and my life than my landlord who has insurance for such things, especially in a place with a housing vacancy less than 1% (aka very very hard to find housing). if i leave, they will have no problem finding a tenant to take my place. any repairs and maintenance are essentially paid for by my rent. they raised property taxes? no problem, just raise rent...

from my POV, seems like a low risk investment to be a landlord.

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