Earlier quoted context omitted.
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I can’t speak to op’s emotional well being, but he is spot on with his reasoning. In the rarified air that most of us here inhabit, it’s easy to forget that for every college professor there is someone for whom tying their shoes is a significant cognitive challenge. For every really smart person, there is someone who lacks the cognition to participate meaningfully in society. For every brilliant individual, there is…
Mondragon as the new city-state
161–170 of 372 posts
Re: Mondragon as the new city-state
#162Earlier quoted context omitted.
It's inherent to the way a coop works that it's not possible to follow the same path. There is no 7% equity to be given, only the repayment of a loan. The coop model does not promote taking risk and hence have many fail, yet a few grow very quick. Another problem is law. At this point it favors the common ownership forms of business. Starting a coop is hence much harder than it should be. This is what i think where t…
A possible model is to divide your shares into ownership/control class shares (reserved only for workers) and profit shares which can be bought/sold by third parties. This gives workers ultimate control over the venture while allowing third-party investment. I don't know if this has been implemented anywhere, but it's a possibility. It's not going to fuel explosive growth like VC funds do, but TBH I'm finding as I ge…
Re: Mondragon as the new city-state
#163Earlier 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.
This is a common misinterpretation of the labor theory of value. I understand it like this: I am a capitalist and my money goes to pay labor to create a thing that I sell in a market. The workers create thing in the production process. I have captured a portion of the labor's true value based on the market, bringing me profit - what Marx called "surplus value." I turn around and reinvest that profit into another busi…
Re: Mondragon as the new city-state
#164Earlier quoted context omitted.
It's true that, in those groups, a shared ethnic identity enables economic cooperation. But the lack of solidarity you observe is the result of a regime of coercion. The official policy: leave your neighborhood, family, friends, and passions for 40+ hours a week to build a capitalist's business. You have to do it to survive. And the police are there to make sure revolts don't break out.
The claim that work is inherently coercive is crazy to me. In order to live, we need food, clothing, shelter, comforts. Those take labor to produce. We've abstracted labor using money, allowing for specialization, so you can perform some specialized labor to provide for all your needs. The needs aren't forced upon you . They're inherent. Labor is required to meet the needs you must meet in order to live (and live in…
If we oversimplify a human's needs into clothing, food, and a dwelling, and ignore the concept of money, the industrial revolution has made it so that humanity is able to produce enough of those for everybody. It then becomes a distribution and coordination problem rather than a problem of there not being enough for everybody. Of course, if we abolished money there would be other problems, so it's still delusional, but if 100 people can make enough food and shelter and clothing for 1000 people using machines, why do the other 900 need to sit in an an office making spreadsheets five days a week?
It's not that simple, of course (because those machines have to come from somewhere), and homesteading is a thing, but it's food for thought.
Re: Mondragon as the new city-state
#165The anarchist culture of the 1800s and 1900s in Spain, especially the emergence of anarcho-syndicalist structures [0], is certainly one of the reasons for Mondagon's existence. [0] https://en.wikipedia.org/wiki/Anarcho-syndicalism
Why aren’t there more of these if they work well?
There’s then also something deeper about making the trade-off between growth(rate) and stability..
OTOH photographer coops are quite common, here is a famous one https://en.wikipedia.com/wiki/Magnum_Photos
Re: Mondragon as the new city-state
#166Earlier quoted context omitted.
Probably more influenced by the Falange driving against classic capital and communist analogs. This was setup under Franco's Spain.
But not BY Franco. Note in the article how the government removes social security support from the coops and they have to set up healthcare themselves. Arizmendiarrieta wasn't a Franco follower at all. He fought with the Republicans and went to jail during the war. After that stopped writing in Basque, as that wasn't seen with good eyes in Franco times.
Work syndicates, cooperatives are absolutely in line with the Falange. Straight out of the 26 points
"We seek redistributing arable land in such a way as to revive family farms and give energetic encouragement to the syndicalization of farm laborers"
Re: Mondragon as the new city-state
#167Earlier quoted context omitted.
> When I work for someone else, I am offloading some of the risk to that person/owner. Workers generally risk their lives or simply injury. Owners "risk" capital. I put that in quotes because our government is typically set up to rescue failing businesses and by that I mean bailing out the owners. If the business fails, the owner simply has less money or they have to become a worker. So who is really taking a risk he…
Companies go bankrupt all the time. > Our economic system is predicated on withholding basic needs for profit. An economic system based on "to each according to his need" has been tried many times. It fails to deliver.
Have there been any attempts since the rise of the smartphone and the Internet? I'm only aware of attempts that predate them and those two things have changed capitalistic societies dramatically, for better or worse.
Re: Mondragon as the new city-state
#168Earlier quoted context omitted.
The paradox of worker-coops is that workers capable of successfully running businesses together are also capable of running businesses independently, so there's no need to form a co-op. It's those incapable of running a business individually or collectively that then form co-ops. Mondragon is the exception, not the rule.
Put another way: Singers who aren't good enough to make it on their own form large idol groups (eg: AKB 48) to sell themselves, while those who are become stars on their own or form small bands with others of similar success. Or to put it another way: Ground meat is great, but the components thereof by themselves are generally regarded as waste.
And I'm sure that plenty of people who could start a business on their own could start a business with the help and support of like-minded partners, and might even be better off for it. I'm not sure where we get the idea that founders must be lone-wolf savants.
Re: Mondragon as the new city-state
#169Earlier quoted context omitted.
> 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…
> the founder loses their investment So does the bank, and the state that (more often than not) subsidised said investment through diverse vehicles. If the bank goes belly up, we've seen what happens, we collectively contribute to save them... because we're collectively sharing all the risk of investment in our financialized economies. I agree that some people don't want risk and others do, but as soon as you start s…
In 2008 I believe bailouts did go to companies to keep them afloat (and thus helped shareholders). However, TARP returned a small profit for the government, so it didn't end up being a gift of free money overall imo. (reasonable people can say that the bailouts were excessive and introduced moral hazard for sure).
Re: Mondragon as the new city-state
#170Earlier quoted context omitted.
> There is no value without labor. Yet wine is higher valued than grape juice. Value can clearly exist without labor.
Winemaking requires far more resources, labor, skill and time than simple grape juice production.