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submitted 1 day ago* (last edited 1 day ago) by Yondoza@sh.itjust.works to c/asklemmy@lemmy.ml

The overarching goal of communism is for laborers to own the means of production instead of an owning/capitalist class. Employee owned businesses are the realization of communism within a capitalist society.

It seems to me that most communist organizations in capitalist societies focus on reform through government policies. I have not heard of organizations focusing on making this change by leveraging the capitalist framework. Working to create many employee owned businesses would be a tangible way to achieve this on a small but growing scale. If successful employee owned businesses are formed and accumulate capital they should be able to perpetuate employee ownership through direct acquisition or providing venture capital with employee ownership requirements.

So my main questions are:

  1. Are organizations focusing on this and I just don't know about it?
  2. If not, what obstacles are there that would hinder this approach to increasing the share labor collective ownership?
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[-] mvirts@lemmy.world 5 points 4 hours ago

Something something they do sometimes

[-] silentjohn@lemmy.ml 14 points 13 hours ago

Employee owned businesses are the realization of communism within a capitalist society.

Right, but we want the whole system changed. Coops are inherently at a disadvantage in monopoly capitalism.

[-] innerwar@lemm.ee 2 points 5 hours ago* (last edited 4 hours ago)

Sorry my ignorance is showing here but I thought coops might be stronger than a company in a way they have more staying power before a company is forced to enshittify. I naively thought people would recognize the better quality of stuff provided from coops because they don’t have to fulfill the shareholders dreams of line must go up. Edit: I see down below the willingness to exploit is a severe disadvantage to coops

[-] interdimensionalmeme@lemmy.ml 1 points 4 hours ago

What?? Why would an organisation free of parasites, not trounce the "meritocratic" system?

[-] psion1369@lemmy.world 8 points 8 hours ago

The more we get, the better it becomes. Trying to just change the whole system at once is just an excuse for not making the small changes that move the needle.

[-] sudo@programming.dev 7 points 8 hours ago

Making more co-ops doesn't make them any more competitive against companies that exploit their workers for extra profit.

If you can make a successful co-op then go for it. But they absolutely aren't a path to any sort of revolution, which communists are all about. Forming a labor union in a critical industry is a much higher priority for communists than starting another co-op.

[-] TheBeege@lemmy.world 1 points 4 hours ago

I'm not convinced of this. One could argue that profit is waste. It's an overhead of wealth delivered for value provided. If co-ops are less incentives towards profit, e.g. by not having a tradeable stock to manage, then the pursuit of profit is a lesser priority. This means the overhead is less, which could mean lower prices.

To put it bluntly, if you don't need to pay dividends to shareholders who deliver no value or huge bonuses to executives at the top, maybe the operating costs could be lower. Yes, the cooperative members would take some of that money as profit sharing among the members, but the working class tends to be less sociopathically greedy than those in power.

Definitely open to feedback. This kind of thinking is newer to me

[-] creamlike504@jlai.lu 2 points 5 hours ago

Small, local communist Ws would enable more state and national communist Ws.

"Well, that co-op just outside of downtown is doing fine. Molly's daughter worked there when she was in high school and said it was the best job she ever had. I guess communists can do some things right."

is an improvement over

"I've never met a communist, but I know they're all stupid and evil. I'm going to vote against anything with the word socialist or communist next to it because [media personality] told me so."

[-] LovableSidekick@lemmy.world 0 points 5 hours ago* (last edited 5 hours ago)

If you're vegan you don't decide to eat chicken just because chickens don't eat meat. They're still chickens.

[-] creamlike504@jlai.lu 5 points 5 hours ago
[-] interdimensionalmeme@lemmy.ml 3 points 4 hours ago

What he means is the commulists still want to dominate workers for their own good, when they say "own the means of production" they are not going to let the actual workers do the owning. The commulists will own tge means of production on behalf of the workers instead of the current parasites.

Cooperatives would put the actual power in the hands of the workers and would stop external forces from directly interfering into their affairs and telling them how to work or what to work on or why.

[-] Psythik@lemm.ee 4 points 5 hours ago

Yeah I don't understand the metaphor, either.

[-] opsecisbasedonwhat@lemmy.ca 4 points 15 hours ago* (last edited 15 hours ago)

I think worker cooperatives are sometimes bashed too much but worker cooperatives are fundamentally a lower petty-bourgeois form of organizing. Cooperatives can only be an ally to the movement of the proletariat and not a driving force. That said, they might have minor use.

I have been thinking about how to sublate the lower petty-bourgeoisie into the movement of the proletariat. I think it would be cool for a bunch of workers in a worker's state to make a worker cooperative as a startup, make it big and then sell the cooperative off to the worker's state. As long as the land and the banks are owned by the state anyway, the worker cooperative would be financed and largely owned by the people indirectly anyhow.

But in terms of pre-revolution, worker cooperatives may help educate the workers who are part of it, and cooperatives can help ease the transition of class suicide for petty-bourgeois and labor aristocracy class traitors.

There's a bit of a trouble for educating the workers compared to unions due to the class situation and nature of ownership. But I think it would be less harmful for a small business owner to create a cooperative than to go out of business during an economic bust and with unexpected declassing become a reactionary blaming their debt on minorities.

I think the trouble is where to focus the limited time and effort of the communists. It's not that cooperatives are bad necessarily, it's just that it's more helpful and important to focus elsewhere.

I do think some communists get weird about strata other than the proles proper such as the reserve pool of labor, lower petty bourgeoisie and the labor aristocracy. The foundation of the communist movement should be the proletariat but these other strata are not inherent enemies. There's not a fundamental antagonism of exploiter and exploited here.

[-] communism@lemmy.ml 10 points 19 hours ago* (last edited 19 hours ago)

The hell of capitalism is the firm itself, not the fact that the firm has a boss.

The forces of the market and of capital do not go away just because the workers own the company. In worker-owned cooperatives, the workers exploit themselves, because the business still needs to grow. They simply carry out the logic of the capitalist themselves on themselves, using their surplus value to expand the business's capital, and paying for their own labour-power reproduction. i.e., the workers all simply become petit-bourgeois.

There are extant organisations (some political parties, some NGOs) that push for more workers' cooperatives, and none of them are communist nor call themselves communist. If you believe in a cooperative-based economy, you are not a communist. I don't mean that as an insult, it's just a fact, the same as if you want, for instance, the current US economic system, you are not a communist. You can advocate for coops but you would fare much better in that political project if you didn't try to put it under the banner of something it's not, and something far more controversial than just "worker coops are good" anyway.

[-] bloup@lemmy.sdf.org 3 points 14 hours ago* (last edited 14 hours ago)

I need you to give me a rigorous definition of what a “firm” is. Because I think to a lot of people, “firm” just means “distinct agent participating in an economy” and so the idea that this is something that can or even should be avoided on principle (even if basically all firms organized under capitalism are socially harmful) I think makes people imagine a bunch of hermits that never interact with each.

[-] communism@lemmy.ml 3 points 12 hours ago

Do you think that it's not possible to interact with each other outside of a market, outside of capitalism?

[-] bloup@lemmy.sdf.org 1 points 9 hours ago* (last edited 9 hours ago)

I mean, it depends. Are you insisting that a market necessarily be composed of extractive firms? Because if so, of course, I can imagine interacting with each other outside of such a structure. But my point is that what people call a “market” in neoclassical economics is literally just any situation where you have a bunch of relatively autonomous groups of people all trying to accomplish various goals all interacting with each other, and so like if we’re going by the neoclassical definition of markets, it really is pretty difficult for me to imagine people interacting with each other outside of that paradigm. The important thing to understand is that even if you hate capitalism, neoclassical economics provide provides a pretty useful framework for analyzing and understanding it, and because of the fact that it can also apply the situations where firms are motivated by other things, like social progress for example, it means it’s perfectly suited for analyzing non-extractive economies too, as long as people are allowed to come together and work on problems without asking someone else for permission first.

[-] witten@lemmy.world 6 points 17 hours ago

Why does a worker-owned coop need to grow? Are you presuming they take outside investment / capital?

[-] Cowbee@lemmy.ml 7 points 16 hours ago

Capitalism compels firms to grow or die, in order to fight the tendency for the rate of profit to fall. We'd need to move beyond a profit-driven economy to move beyond this issue.

[-] merdaverse@lemmy.world 1 points 11 hours ago

There is no tendency of the rate of profit to fall. The theory is inconclusive, as is empirical research. If TRPF were true, then growing a company would, in fact, accelerate the process.

[-] Cowbee@lemmy.ml 2 points 7 hours ago

It's a tendency, not an ironclad law. Competition forces prices down, and rates of profit with it, but this process can be struggled against by expanding markets or finding new industries, which is why Capital always pours into "new fads" in the short term. Imperialism is actually quite a huge driver of this.

There are numerous studies showing broad rates of profit falling over time, as well. Moreover, Marx never lived to see Imperialism as it developed in the early 20th century, where the TRPF was countered most firmly.

[-] merdaverse@lemmy.world 1 points 12 minutes ago* (last edited 9 minutes ago)

Competition forces prices down, and rates of profit with it

This is not true in the general case. If prices for input materials are down, profits rise for the company using them. One company's profit loss is another's gain. That is even with the shaky assumption that competition can exist long term in a free market. Imperialism, as defined by Lenin, results in concentration of capital and the removal of competition.

this process can be struggled against by expanding markets or finding new industries

There are counteracting forces for it, but expanding is not one of them. Expanding does not change the rate of profit (profit/capital invested); at most, it changes the total profit.

[-] communism@lemmy.ml 4 points 14 hours ago

Because they are subjected to market forces. I'm not referring to the decisions an individual worker in a coop might make—an individual may well decide to give away all their money and become homeless, that doesn't mean it's in people's interests to. In a market, you must compete with other businesses, otherwise you will be out-competed and not survive. The "profits" obtained by a coop are still surplus-value; all the laws of capital outlined by Marx are still at play. Marx's critique of political economy did not really hinge upon the specific boss/employee relationship; it's about impersonal domination of the market over people who live in a capitalist mode of production. In Capital Marx spends quite a bit of time talking about how even capitalists are subjected to and dominated by capital; the domination is impersonal, and the domination of (hu)man by (hu)man is only secondary to that impersonal domination.

[-] bloup@lemmy.sdf.org 2 points 14 hours ago

Have you ever considered that the model of free market under perfect competition in neoclassical economics doesn’t actually say that the market needs to be powered by the financial profit motive, just that the firms need to maximize their own utility? It’s just that in capitalism these get conflated because it’s almost always one and the same thing. But it doesn’t necessarily have to be the case. If you have an economy composed entirely of mission-oriented nonprofit organizations for example that compulsively reinvest all their excesses and internalize all of their external cost, you can still analyze it as a free market under perfect competition, and ironically, it works even better than it does for capitalism.

[-] communism@lemmy.ml 2 points 12 hours ago

I am opposed to "maximising utility" because I am a communist. Production should serve needs, not production for the sake of production.

compulsively reinvest all their excesses and internalize all of their external cost

Ok, still exploitation.

I can see that those are your political beliefs. You are welcome to have those political beliefs. OP is asking about communists, and communists do not want this, so this is rather orthogonal to the question.

[-] bloup@lemmy.sdf.org 2 points 9 hours ago* (last edited 9 hours ago)

I’m just curious what you think utility is and also who do you think is being exploited in economic institution that literally has to internalize all of the external cost? Also believe it or not I didn’t actually express any political beliefs here so I would appreciate it if you didn’t just assume that because I’m challenging you on your conception of things, it means that I disagree with your politics

[-] Cowbee@lemmy.ml 58 points 1 day ago* (last edited 11 hours ago)

This isn't really accurate, from a Marxist perspective. Marx advocated for public ownership, ie equal ownership across all of society, not just worker ownership in small cells. This isn't Communism, but a form of cooperative-based socialism. There are groups that advocate for worker cooperatives, but these groups are not Communist.

Essentially, the reason why cooperatives are not Communist is because cooperatives retain class distinctions. This isn't a growing of Communism. Cooperatives are nice compared to traditional businesses, but they still don't abolish class distinctions. They don't get us to a fully publicly owned and planned economy run for all in the interests of all, but instead create competition among cooperatives with interests that run counter to other cooperatives.

Instead of creating a Communist society run for the collective good, you have a society run still for private interests, and this society still would inevitably erase its own competition and result in monopoly, just like Capitalism does, hence why even in a cooperative socialist society, communist revolution would still be on the table.

[-] TheBeege@lemmy.world 2 points 13 hours ago

That all makes sense except the class distinctions part. If whole cooperatives share the capital of the organization, how is there a class divide?

Everything you're saying about competition and private interest makes sense, with my limited understanding. I just don't get the class point you made. Help me understand?

[-] Cowbee@lemmy.ml 4 points 12 hours ago

Cooperatives are petite-bourgeois structures. They are small cells of worker-owners that only own their small cell, and exclude its ownership from society as a whole. Since cooperatives exist only in the context of the broader economy, they form small cells of private property aimed at improving their own standing at the expense of others.

Think of it this way, a worker in coop A has fundamentally different property relations to the Capital owned by coop A than worker B does in coop A. This creates a society of petite bourgeois worker-owners, not a classless society of equal ownership of all amongst all.

[-] TheBeege@lemmy.world 1 points 5 hours ago

Got it. That makes much more sense. Thank you for the clarification! And very clear explanation

[-] Yondoza@sh.itjust.works 11 points 1 day ago

Thank you for the write up. That distinction makes a lot of sense.

[-] Cowbee@lemmy.ml 9 points 1 day ago

No problem!

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[-] chicken@lemmy.dbzer0.com 29 points 1 day ago

If successful employee owned businesses are formed and accumulate capital they should be able to perpetuate employee ownership

One issue is, that isn't necessarily the priority the employee owners will have. I followed some news of a successful coop business where I lived, that sold the business because it had become worth so much that the payout was life changing money for all of those people, so they voted to take the money and potentially retire sooner rather than keep going as a coop.

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[-] Phoenix3875@lemmy.world 26 points 1 day ago* (last edited 1 day ago)

According to the UK's Labour Party's report on worker co-operatives in 2017, the main difficulty is access to credit (capital). It makes sense since the model basically eliminates "outside investors". It has to

  1. Bootstrap with worker's own investment, or
  2. Get investment from credit unions, or
  3. Have (national or local) government to back it up

Even in the above cases, the credit is often not large or cheap enough for the cooperatives to be competitive. (There are examples in the report that serve as exceptions, I highly recommend giving it a read.)

So at least from this, I'd think the appropriation of means of production would be more fundamental rather than being a simple result of some special way of organizing.

[-] AntelopeRoom@lemm.ee 2 points 13 hours ago* (last edited 13 hours ago)

It makes sense that this is a limiting factor. However, I think it's good that outside investors are kept out so that the business can serve the interests of its employees long term. Once the gears are in motion, I think it could work. Also, if these worker cooperatives were formed by people willing to work for basics like food and shelter initially, as well as equity, then they have a better chance.

[-] LainTrain@lemmy.dbzer0.com 47 points 1 day ago

I think communists and socialists and anarchosts and broadly leftists do argue for cooperatives and workplace democratisation.

The reason they maybe don't do it enough is because those businesses in our present environment will get beaten by exploitation mostly.

Co-operatives by nature will sacrifice profit for employee conditions because they have more stakeholders (and shareholders) to be accountable to. Lower wages through exploitation will tend to reduce costs and allow the capitalist businesses to drop prices, and outcompete opponents and secure more investment capital due to higher market penetration, which will allow them to invest in their business, incl. Marketing and product development, and outcompete the more fair sustainable business, until they corner the market and can jack up.the prices and bleed consumers dry and push for laws/lack thereof to exploit employees and cut costs further.

[-] Cowbee@lemmy.ml 18 points 1 day ago

Cooperatives tend to be more stable than traditional firms, but they are both harder to start, and aren't Communist. OP is confusing worker-owned private property with the abolition of Private Property, Communists don't focus on worker cooperatives because cooperatives retain petite bourgeois class relations.

Rather than creating a society run by and for all collectively, cooperatives are a less exploitative but still competition and profit-driven form of private business. Communists wish to move beyond such a format, even if we side with cooperatives over traditional firms when available.

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[-] qyron@sopuli.xyz 18 points 1 day ago

In my country, the communist party (very watered down version of communism but still) is behind/aligned with most unions and they defend that companies should either be owned by the employees (co-ops) or employees should have a stake and saying on companies governance.

We have another left-wing party that even defends that failing companies should be returned to the employees, with government backed funding (loaned) if necessary to recapitalize the business and relaunch the company under employee governance.

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this post was submitted on 17 May 2025
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