This article on private forms of socialism is written to demonstrate how Co-operatives and Employee Owned Organizations differ from Capital Destroying Capitalism and Capital Destroying Socialism. It is also written to demonstrate how they are similar to Producer Rewarded Open Market Economics. They tend to reward the Producers. They are organized for the mutual economic benefit of the Producers who join and participate. They tend to increase prosperity and economic stability among those who participate in the Co-operative. They also increase economic prosperity and stability in the society and nation where they operate.
Private forms of Socialism are Co-operatives and Employee Owned Organizations.
- To co-operate is to act jointly, work toward the same end.
- Co-operation is the process of working together to the same end.
- Co-operation is assistance, especially by ready compliance and requests.
- Co-operation, as used in Economics, is the formation and operation of Co-operatives.
- A Co-operative involves mutual assistance in working together toward a common goal.
- A Co-operative is a Farm, Business, etc. owned and run jointly by its members, with profits or benefits shared among them.
- A Co-operative is a Farm, Business or other Organization that is owned and run jointly by its members, who share the profits or benefits.
- Co-op, informal, is used for a Cooperative society, business, or enterprise. Let’s stop by the Co-op and purchase some groceries. We market our farm products at the local Farmers’ Co-op.
The above definitions were taken from the New Oxford American Dictionary, third edition.
We are going to look at how Cooperatives tie into Socialism.
Cooperatives fall into the second type of Socialism of the six listed in the article 3.0 Socialism found in http://personalist.wpengine.com. 2. Socialism can be a community of individuals working together during the process of creating prosperity through production.
A cooperative is a legal entity owned and democratically controlled by it members. Members often have a close association with the enterprise as producers or consumers of its products or services, or as its employees. (Wikipedia)
Cooperatives often share their earnings with members as dividends, which are divided among the members according to their participation in the enterprise, such as patronage, instead of according to the value of their capital shareholdings. (Wikipedia)
Cooperatives differ from Capital Destroying Capitalism and Capital Destroying Socialism.
Capital Destroying Capitalism is about private individuals who are counter-producers. In Capital Destroying Capitalism the private individual (counter-producer) takes the laborers’ and workers’ money, value, energy, wealth, capital and power without exchanging self-created commodities, trades, goods and services for it. The laborers and workers are the true Producers. They create all money, value, energy, wealth, capital and power that exist on the planet.
Here are some quotes related to Capital Destroying Capitalism.
“I care not which puppet is placed on the throne of England to rule the Empire…the man who controls Britain’s money supply controls the British Empire. And I control the money supply.” (Baron Nathan Mayor Rothchild)
“I have ways of making money that you know nothing of… I would rather earn 1% off a 100 people’s efforts than 100% of my own efforts.” (John D. Rockefeller)
This is classical living off other peoples’ (Producers’) production. This is classical rich on welfare. This is classical stealing wealth from the laborers and workers who create it while laboring and working. This type of economics is greed economics.
This also illustrates the necessity for controlling the money supply. It is imperative that there be no private control of the money supply. It is vital that governments maintain control of their money supply and apply the principles of the Constant Money Supply. Refer to the article, The Constant Money Supply, in http://personalist.wpengine.com.
In Article I, Section 8 of the US Constitution: “To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measure.” As laid out in the US Constitution, this is specifically the job and responsibility of the Government. Placing it into the hands of Private Bankers such as the Federal Reserve has lead to massive inflation and economic depressions.
This leads up to a quote made by Thomas Jefferson. “I however, place economy among the first and most important republican virtues, and public debt as the greatest of the dangers to be feared.” (Thomas Jefferson 3rd US President)
Co-operatives are largely communities of individuals working together during the process of creating prosperity through production.
Capital Destroying Socialism is about individuals taking ownership of all productive activities in the name of State Ownership. The individuals in power take and control all money, value, energy, wealth, capital and power. Capital Destroying Socialism is very similar to Capital Destroying Capitalism. Citizens of a society or nation are under duress to be part of the Socialist State. They are governed by a Totalitarian style government.
Cooperatives are socialist organization where members agree to be members. They, on their own volition, become members of a cooperative. They are not forced to be members. The members govern the co-op in a Democratic way. Co-ops use a system of rewarding the Producers.
In Capital Destroying Socialism the members are forced to be in the organization. The created money, value, energy, wealth, capital and power are State owned. It is really owned and controlled by the counter-producers operating the enforced Socialist State. A small part of the money, value, energy, wealth, capital and power are distributed equally among the laboring and working members. Most wealth goes to the control of the rulers on top and rewards counter-producers.
Cooperatives are agreed upon memberships. Capital Destroying Socialism enforces membership like Communism does. Capital Destroying Socialism uses a form of authoritarian rule with the force of the State behind it.
In Capital Destroying Capitalism the system of concentrating the money, value, energy, wealth, capital and power is through private ownership. The Capital Destroying Capitalists enforce their control over the workers and laborers (Producers) through the use of socialist policing, military and other government systems. They use Socialism to enforce their rich on welfare system.
The Capital Destroying Socialists also use the socialist policing, military and other government systems to enforce their control over the workers and laborers (Producers.) They also use the force of the socialist state to enforce their rich on welfare system.
In both Capital Destroying Capitalism and Capital Destroying Socialism the laborers and workers (Producers) are nothing, should have nothing, and get almost nothing in exchange for their production of commodities, trades, goods and services. Yet, they create all the money, value, energy, wealth, capital and power that exist on the planet.
Both co-operative and employee owned organizations are largely communities of individuals working together during the process of creating prosperity through production.
In these organizations earnings are shared with members in the form of wages and dividends. Wages are paid to members in worker-owned organizations or cooperatives. Dividends are divided among the members according to their participation in the enterprise. Dividends are paid according to patronage or use instead of according to the value of their capital shareholdings.
In a Farmer’s Union Grain Cooperative dividend payment would be based on the amount of use of the co-op. Farmers producing higher amounts of grain would patronize or use the co-op more. Farmers Union Grain Cooperatives are used to provide marketing services for grain produced by farmers in a given area.
The following are examples of Cooperatives.
A Non-Monetary Cooperative provides a service based on voluntary labor. An example would be a pre-school co-op. Parents volunteer to assist in operating the co-op.
A Retailers’ Cooperative is a group of retailers working together to receive discounts from manufacturers and to pool marketing.
A Worker Cooperative is owned and democratically controlled by it worker-owners. In Worker Owned Cooperatives the members receive the money they have created in the form of wages.
A Volunteer Cooperative is run by and for a group or network of volunteers for the benefit of the members or the general public.
A Consumers’ cooperative is a business or an organization owned by the customers. My parents were a member of a food co-op. They could purchase food in bulk at wholesale prices.
A Housing Cooperative is a mechanism or system for ownership of housing. Residents own shares reflecting their equity in the cooperatives’ real estate or have membership and occupancy rights through paying subscriptions or rent.
A Utility Cooperative is a consumers’ cooperative that provides for the delivery of a public utility. They deliver electricity, water or telecommunications services to its members. Profits are either reinvested into the utility infrastructure or paid back to its members based on patronage or use of the utility. The Rural Electrification Administration (REA) is an example of a Utility Co-op.
An Agricultural Cooperative or a Farmers Co-op is where farmers pool their resources for mutual economic benefit. There are Agricultural Supply co-ops and Agricultural Marketing and Storage Co-ops.
Credit Unions, Cooperative Banking and Cooperative Insurance Cooperatives provide economic benefits to their members. Credit unions are cooperative financial institutions owned and controlled by their members. They provide the same services as banks but are not-for-profit organizations.
Federal or Secondary Cooperatives are cooperatives that cooperate with other cooperatives. The belief is that cooperatives serve their members most effectively when they work in cooperation with other cooperatives.
Cooperatives have done very well over the ages. They tend to reward the Producers. This leads to stability for the cooperative and its members. Members receive economic benefit when working in groups called cooperatives.
There isn’t a Capital Destroying Capitalist or a Capital Destroying Socialist sitting on top of the cooperative organization taking huge amounts of money, value, energy, wealth, capital and power because he has the power and government force behind him to do so.
Cooperative Banks and Credit Unions build up buffers that counter the effects of economic crises caused by the counter-producers.
This is the article on Private Forms of Socialism. It can be seen that there are types of economic production systems that do very well when operated as Cooperatives. Cooperatives are communities of individuals working together to create prosperity. They are forms of private socialism that create money, value, energy, wealth, capital and power.
Producer Rewarded Open Market Economics
The Science of Economics
By: RP Obrigewitsch