On this site we have proposed several methods which the government could use to stimulate the creation of a cooperative economy.
First of all, the government should give preferential treatment to worker cooperatives when procuring goods and services from the private sector. This will give cooperatives an advantage and hence create an inducement to start a cooperative and to maintain them.
Also the government could set up a finance company which will help people with funding a cooperative through either finance or operating lease. This way the start-up costs and hence risks for new cooperatives will be reduced. By reducing the costs of setting up a cooperative, their formation will become more attractive.
Further the government should create a level playing field between wage labor and self-employment. This requires, for instance, the abolition of minimum wage laws and its replacement with some kind of basic income guarantee. A basic income will reduce the risk people face when they run their own businesses.
Another idea is when people who have lost their job apply for unemployment benefits, to inform them of the possibility to set up a cooperative with other people who lost their jobs. This should be combined with a retraining program, to ensure people will have the necessary skills to operate a worker cooperative.
Last year I did a review of Where does Money come from by Josh-Ryan-Collins, Tony Greenham, Richard Werner and Andrew Jackson. You can read an electronic version this book here.
We endorse the cooperative movement, though we usually discuss worker cooperatives as a mean to achieve self-employment and economic democracy. Consumer cooperatives have received very little attention at this site. Continue reading Consumer cooperatives and automation
Princes of the Yen is a confronting documentary based on professor Richard Werner’s book with the same title. This documentary explores how central banks and the IMF deliberately have created economic bubbles with subsequent crises as a mean to pressure politicians to implement changes. Continue reading The Princes of the Yen
Earlier we wrote about that one of this disadvantages of a cashless society is that it would further increase the already great power of commercial banks. We proposed that the national monetary authority to issue stored-value cards to enable the public to make payments without having to rely upon the services of commercial banks. Continue reading Emoney
Regular readers will know that we are in favor of self-employment and worker cooperatives. And consequently we are in favor of government policies to stimulate the formation of worker cooperatives. Our ideal economy would be a version of worker capitalism, i.e. a system where there is no distinction between workers and capitalists (those who own the means of production). Continue reading State and Worker Capitalism
Borrowing and lending money is the cornerstone of modern capitalist economy. And commercial loans virtually always involve interest. Therefore most people are unable to imagine a society without interest. However interest has several negative effects on society. Continue reading Interest-free finance
In modern societies the government accounts for between thirty and sixty percent of GDP, hence public spending is an important factor in how the economy is organized. Though the government funds many activities, e.g. road construction, often such jobs are contracted out to private businesses. Purchasing goods and services from the private sector by the state is known as public procurement. Continue reading Public procurement
The JAK members bank offers an alternative model for banking.
Continue reading Videos on JAK banking