We Can Do Better Than Capitalism

In our capitalist economy, business enterprise is controlled by capitalists, of course, and structured to bring highest return to shareholders. We鈥檙e all supposed to love this setup because competition among companies gives us ever cooler products and always better deals. Right?

But, wait a minute. 鈥� Where is the competition?

Over just the past 15 years, mergers have proliferated so quickly that in . Economists warn us this level of concentration kills competition鈥攏ot to mention bringing with it an erosion of wages, as monopoly weakens competition for workers too.

Since monopoly power compromises capitalism鈥檚 supposed virtues, it鈥檚 time we ask: Can we find better ways to structure business? Clearly, business driven by highest return to existing wealth leads inevitably to concentration and, consequently, to ever-worsening inequality. In America today, .

So, are we stuck in this deadly spiral toward ever greater concentration of economic power?

No, we can do better. We know we can because some of us already are.

Americans in all walks of life are creating companies with business models driven by social purpose, not just their own pocketbook priorities.

In the U.S., for example, set up to benefit workers, members, consumers, and the broader society.

In early 1993, for example, I interviewed one such 鈥渃ooperator,鈥� Florinda DeLeon, who just a few years earlier had been a single parent raising three children in the Bronx on welfare benefits. Then, her life changed radically: DeLeon became one of 170 co-owners of a then-new cooperative called Community Home Care Associates. Soon thereafter, she enjoyed decent pay, health benefits, and paid vacation.

鈥淏eing a worker-owner means we decide what鈥檚 best for us,鈥� she told me.

I鈥檝e never forgotten DeLeon鈥檚 story, and certainly have hoped all these years that her co-op had survived. Then, last week in Wisconsin, I was treated to a huge surprise.

At a gathering focused on the value of cooperatives, I met CHCA鈥檚 current director, Adria Powell. I learned that her home care co-op now has more than 2,000 workers, making it the largest worker-owned cooperative in the country. I was amazed.

Other CHCA brag points?

Not only do CHCA鈥檚 workers earn superior wages (roughly twice the market rate) compared to employees of private home-care agencies, but they hold on to their jobs longer, with turnover at only 15 percent, compared to the industry average of 40 percent. Clearly, home health care is a tough job, especially without adequate pay and benefits.

At the same gathering in rural Wisconsin, I was reminded a second time of my failure to foresee the breakthrough success of another noncapitalist enterprise: Organic Valley dairy cooperative, the organizer for the event.

. In 1988, near where we were meeting last week, I鈥檇 huddled with a handful of farmers who wanted to help themselves and their struggling neighbors. The goal? A dairy cooperative that could help extend organic farming practices while helping buffer farm families from the ravages of the farm economy.

I thought, 鈥淥h, how sweet 鈥� these guys care enough to help their neighbors in trouble.鈥�

A bit condescending? Yeah, I鈥檒l admit it.

Now, three decades later, I feel downright silly. I failed to imagine what this cooperative would become. The courage, compassion, and vision of these determined dairy farmers would build a billion-dollar business, today benefiting more than .

Many people reading this might think that cooperatives are positive but almost irrelevant in light of the power of the dominant capitalist model. To those people, I urge you: Don鈥檛 fall into the trap I did.

Worldwide, works in a co-op; and 鈥攏o doubt a number greater worldwide than those who own shares in publicly traded companies. Or consider that the total sales of cooperatives worldwide comes to about : Apple, Google, Microsoft, Amazon, and Facebook.

In one of Italy鈥檚 most prosperous regions, Emilia Romagna, roughly 30 percent of the economy is generated by cooperatives. With almost 4.4 million people, this region enjoys one of the highest per capita GDPs in Italy.

Co-ops are hardly niche.

Beyond cooperatives, U.S. entrepreneurs are creating other forms of values-driven enterprise. For instance, roughly , the 鈥淏enefit Corporation,鈥� committed to generating a public benefit beyond profit鈥攆rom environmental sustainability to employee health care.

Outdoor clothing giant Patagonia is an example. While Americans each throw out 鈥攁lmost all of which could be reused鈥擯atagonia commits to repairing and taking back any item it sells.

Of course, I鈥檓 not suggesting that these emerging businesses will end the devastation of brutal capitalism, now leaving . We must reclaim the lost tradition of 鈥渢rust busting鈥� and enforce other anti-monopoly rules, remove obstacles to union organizing, seriously address tax-law injustices and much, much more.

What I am suggesting is that we celebrate that the profit-driven-only capitalist enterprise is not the only game in town. And, in our economic lives, we can actively support those enterprises accountable not to wealthy shareholders, but to their workers, the environment, and the community. As citizens, we can step up to ensure changes in the rules that govern our economy, enabling the possibility of an economic democracy.

This article was originally published by . It has been edited for 精东影业 Magazine.

Frances Moore Lapp茅 is the author or co-author of 20 books about world hunger, living democracy, and the environment, beginning with Diet for a Small Planet in 1971. She has been featured on numerous media and news outlets. Frances is the cofounder of three organizations including Food First and the Small Planet Institute, which she leads with her daughter, Anna Lapp茅. The pair also co-founded the Small Planet Fund, which channels resources to democratic social movements worldwide. For more information visit聽www.smallplanet.org聽and聽www.democracymovement.us

Reprints and reposts: 精东影业 Magazine encourages you to make free use of this article by taking these easy steps.

Republish This