Monday, March 4, 2013

The Economy: Under New Ownership

How cooperatives are leading the way to empowered workers and healthy communities.
 
Employees at Equal Exchange, a worker-owned cooperative.
 Photo Credit: Paul Dunn
I happen to know a bit more than the average shopper about Equal Exchange, because I count myself lucky to be one of its few investors who are not worker-owners. Over more than 20 years, it has paid investors a steady and impressive average of 5 percent annually (these days, a coveted return). 

Maneuvering my cart toward the dairy case, I search out butter made by Cabot Creamery, and pick up some Cabot cheddar cheese. I choose Cabot because, like Equal Exchange, it’s a cooperative, owned by dairy farmers since 1919. 

At the checkout, I hand over my Visa card from Summit Credit Union, a depositor-owned bank in Madison, Wis., where I lived years ago. Credit unions are another type of cooperative, meaning that members like me are partial owners, so Summit doesn’t charge us the usurious penalty rate of 25 percent or more levied by other banks at the merest breath of a late payment. They’re loyal to me, and I’m loyal to them. 

On my way home, I pull up to the drive-through at Beverly Cooperative Bank to make a withdrawal. This bank is yet another kind of cooperative—owned by customers and designed to serve them. Though it’s small—with only $700 million in assets, and just four branches (all of which I could reach on my bike)—its ATM card is recognized everywhere. I’ve used it even in Copenhagen and London. 

With this series of transactions on one afternoon, I am weaving my way through a profoundly different and virtually invisible world: the cooperative economy. It’s an economy that aims to serve customers, rather than extract maximum profits from them. It operates through various models, which share the goal of treating suppliers, employees, and investors fairly. The cooperative economy has dwelled alongside the corporate economy for close to two centuries. But it may be an economy whose time has come. 

Something is dying in our time. As the nation struggles to recover from unsustainable personal and national debt, stagnant wages, the damages wrought by climate change, and more, a whole way of life is drawing to a close. It began with railroads and steam engines at the dawn of the Industrial Age, and over two centuries has swelled into a corporation-dominated system marked today by vast wealth inequity and bloated carbon emissions. That economy is today proving fundamentally unsustainable. We’re hitting twin limits, ecological and financial. We’re experiencing both ecological and financial overshoot. 

If ecological limits are something many of us understand, we’re just beginning to find language to talk about financial limits—that point of diminishing return where the hunt for financial gain actually depletes the tax-and-wage base that sustains us all.

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