Re: *** May 2012 low content thread ***
.500NE:
Or system here in the U.S. is certainly free enough that a large groups can get together and do the co-op thing.
Well, I see that you are asserting this. But I do not see your argument for it. And my main response is simply to deny that the claim is true -- political economy in the U.S. is not really free enough that you can get any kind of useful competitive test to tell you what might become of co-op business models in a truly freed market.
Now if you mean that the system in the U.S. "free enough" in the sense that there are not any laws which forbid co-ops from existing, then sure, that is true, but I hardly think that's the only thing that you need to keep track of. Often the effects that government has on the economy have little to do with what it bans outright or what it mandates outright, but rather with what it subsidizes, what it taxes, and the ripple effects of the ways in which it reshapes certain key markets, e.g. for money, credit, land, insurance, etc. Actually-existing co-ops tend to face a lot of consistent practical problems that are related to a few key issues -- well-entrenched, often subsidized competition from big incumbents; the difficulty of getting access to capital, either for initial capitalization or for later expansion, relative to their conventionally capitalist-owned competitors; the large scale and volume that are necessary to cover the initial costs of starting up and the fixed costs of staying in business. There's a lot of stuff to talk about here, some of which we could dig into and some of which we could probably only get at in outline without some pretty serious digging into empirical research and number-crunching. But briefly what I'd want to say is that none of these common pain points is really innocent of, or independent of, government privileges or industrial policy. Governments have many policies which systematically favor large incumbents over small startups of any kind; which artificially juice credit to big businesses and artificially stabilize the operation of the kinds of financial markets that most favor corporate-owned over worker-owned businesses; which massively increase the fixed costs of starting or maintaining a business, in ways that most hurt small community-dependent operations like co-ops; etc.
There is of course a lot of fine-grained points to argue about here, and I'm mostly outlining my view rather than giving you the defense of it, but for the defense I would largely point you to the essays in, e.g., Markets Not Capitalism.
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