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Are Cooperatives Socialist?
How we can all benefit from economic democracy
The basic concept of a cooperative where the ownership is held by the employees and/or consumers sounds like a form of socialism. But is it really? There are some unique aspects of how cooperatives fit into a world where modern economics is mainly fueled by capitalism and you might be surprised to find cooperatives, born in socialism and economic democracy can work well within capitalism.
A cooperative is a special form of corporation that places ownership and/or control of the corporation in the hands of the employees or patrons of the corporation. These cooperatives can be oriented as a worker, consumer, producer, or hybrid co-ops. REI is probably one of the best-known hybrid coops working in the consumer retail space but food coops are also very popular.
Roots
The history of cooperatives goes back to Scottish weavers in 1761 who banded together to reduce the cost of food. Their efforts expanded to include education and improved working hours as well.
The Industrial Revolution and the rise of Capitalism put a great deal of pressure on the working classes. Artisan skills began to be replaced with rote factory work and working conditions were declining spawning philosophical thought about the ideals of liberal…
