AlterPolitics New Post

The Year Of The Co-op: New Survey Reveals Americans View Co-ops More Favorably Than For-Profit Businesses

by on Friday, May 11, 2012 at 12:25 pm EDT in Economy, Labor, Occupy Wall Street, Politics

On October 31, 2011, the United Nations proclaimed 2012 to be “The International Year of Cooperatives (IYC).” The world body uses this annual designation to help bring attention to what it believes are some of the world’s most critical issues. On its IYC website, it praises the cooperative model for its contributions towards ending world poverty, and encourages more groups to embrace this “alternative means of doing business.”

Co-ops benefit communities around the globe by offering employees a living wage with favorable working conditions, and by promoting social integration and sound environmental policies.

Co-ops have recently enjoyed something of a resurgence in the U.S. as its economy has continued to sputter. Worker pay has remained on the decline for decades, and a corporate hijacking of U.S. democracy has left the public distrustful of the 1% who appear to be living large off the pain, suffering and disempowerment of the 99%.

‘Social injustice’ has become the buzzword to define America’s new economic reality.

In just the last few years, Americans have watched in horror as laissez faire Capitalism wreaked havoc, with impunity, on their communities. From Wall Street corruption bringing the entire financial system to its knees, and those responsible profiting from the calamity they engineered, to BP & Halliburton’s gross negligence resulting in 200 million gallons of oil pouring into the Gulf, and creating a catastrophe so severe that two full years later the sea life there can only be described as “horribly mutated creatures.” 

The public’s faith in for-profit ‘free’ markets has understandably waned. Even Republican ‘word doctor’ Frank Luntz recently cautioned that ‘Capitalism’ is now a dirty word, and he advised Republicans to stop using it.

As a result, non-profit cooperative businesses have experienced a groundswell of new interest from people eager to work for, and/or spend their money at more community-conscious companies.

Last Fall, the Occupy Wall Street movement spearheaded “Bank Transfer Day,” where hundreds of thousands of Americans closed out their accounts at ‘for-profit’ banks and moved their money to ‘non-profit’ cooperative credit unions.

And now, the results of a new national survey reveal just how favorably Americans view non-profit cooperatives when compared to for-profit businesses. Not only do they prefer the community-driven values these co-ops represent, they prefer their products and services to those of for-profit companies:

According to the survey, nearly one-third of all Americans belong to consumer cooperatives. Seventy-two percent of Americans believe cooperatives are “helpful to consumers,” while only eleven percent believe they are “unhelpful.”

Last week, following the release of the survey results, the White House invited 150 cooperative leaders to its weekly “community leaders briefing.” The co-op leaders were from all different sectors of the economy, and they educated administration officials about the large role co-ops have played in helping to put Americans back to work.

Whereas corporations — being required to maximize shareholder value by maximizing profits — have been outsourcing American jobs to developing countries for cheap labor and nonexistent environmental and labor laws, non-profit co-ops have been employing Americans, because their core responsibility is to their customers, their employees, and their communities. 

Attendee Liz Bailey, who is interim president and CEO of the National Cooperative Business Association, had this to say about the White House briefing:

Every day cooperatives around the U.S. are stimulating the economy and we are pleased to have the opportunity to discuss our successes in job creation and ways to use the cooperative model to continue to strengthen communities large and small.

Two million jobs are generated each year as a direct result of cooperatives, which illustrates the incredible impact that these organizations have on local economies.

Recently, M.I.T. professor and author Noam Chomsky urged the Occupy Movement to mobilize for community-centric cooperatives. He told Laura Flanders that one way to target private power in the U.S. would be to help promote companies with stakeholder-based cooperative models, rather than those with shareholder-based corporate models. 

With over 29,000 cooperatives in the U.S., ranging from local businesses (grocery stores, coffee shops, movie theatersdaycare centershealth care, etc.) to Fortune 500 companies, there are many to choose from. Several of the bigger co-ops in the U.S. include: Associated Press (AP), Land O’ Lakes, Sunkist, Ace Hardware, Ocean Spray, REI (Recreational Equipment Inc), Southern States, True Value Hardware … 

By becoming more ‘conscientious consumers’ and choosing cooperatives, Americans will help to promote the core values that co-ops espouse. And if corporations begin to see their customers fleeing to cooperatives, they will be forced to reconsider their own business practices to lure them back.

It might take another ‘Bank Transfer Day’–style mobilization effort to really entice a large enough number to participate, and to generate the press required to start a new national discussion; that discussion being “what business model (corporate v cooperative) ACTUALLY benefits Americans? Which model’s core principles ensure that jobs are never outsourced, and customers are never taken advantage of, and the environment is never polluted? Which model’s core principles amounts to little more than turning as big and as quick a profit as possible for its owners?” 

With the nation’s democracy now effectively hijacked by the corporatocracy, it begins to dawn on you that a vote with your dollars is now the only vote that counts. But surprisingly enough, that can still feel rather empowering.

“Job Creators” & “Investors”: The Disconnect Between Republican Policies & Economic Stimulus

by on Monday, March 7, 2011 at 11:03 am EDT in Politics

Rep. Darrell Issa (R-CA)The Republican Party’s latest economic policy proposals are nothing short of pure unadulterated neo-liberalism — the radical merciless ideology foisted upon the world by economist Milton Freedman. Recent events throughout the country have been playing out like a chapter straight out of Naomi Klein’s hugely important bestseller, The Shock Doctrine.

First the tax cuts for the wealthiest 2%, then the calls for deregulation, union-busting, and privatization; followed by — surprise! — severe austerity measures. These policies, if fully enacted, will accomplish little more than transferring trillions of dollars to the wealthiest individuals and corporations, and in doing so crushing the lives of average Americans.

Any ‘trickle down’ effects yielded from extending Bush tax cuts for the wealthy — which added nearly a trillion dollars to our national debt — would have been negligible at best. But they will literally be jack-hammered to oblivion if followed by the Republican-proposed Draconian measures.

Their calls for deep spending cuts in the public sector (both at Federal and State levels) will translate into whittling away all safety nets for America’s elderly and most vulnerable, while issuing pink slips for teachers, cops, firemen, postal employees, librarians, etc.

Instead of paying teachers to educate our children, and cops to fight crime, taxpayers will instead be writing their unemployment checks. That is, until Republicans can finally figure out a way to terminate unemployment insurance as well. Meanwhile, our national infrastructure continues to crumble beneath our feet.

And their proposals do absolutely nothing to stimulate the economy. Unless you believe that sacking public workers will magically reduce unemployment, and somehow stimulate consumer demand (the driver for economic expansion).

Rather than subjecting lower and middle-income Americans to severe austerity measures, our economy would be best served by doing the very opposite. Policies that help to improve the financial bottom-line for struggling Americans guarantees an economic spark, if only because these Americans have little choice, but to spend every last dollar they make on necessities (i.e. they put ALL of it right back into the economy).

Unlike lower and middle-income Americans, the wealthy have the luxury to hoard each and every penny netted from their tax cuts. And few of them will be enticed to invest in a recessionary environment where risks are abnormally high.

How many millionaires are out stimulating the economy right now by purchasing third or fourth homes here in the U.S., when economists are now forecasting a double dip in home prices? How many are considering starting up new businesses, dependent upon consumer spending, when consumer bankruptcies just hit a 5-year high?

For wealthy individuals who do choose to invest, many will wisely target foreign companies, foreign mutual funds, foreign real estate, and multinationals who do business where economies are still growing. In other words, the ‘trickle-down’ part of Republican economic policies will actually occur in China, India, and elsewhere.

The supply-side ideology is based upon a faulty and outdated model that conveniently ignores competition for investment dollars overseas, and is largely dependent upon exaggerating the discretionary spending behavior of the wealthy.

As for corporate tax laws, two-thirds of all U.S. corporations dodged paying a single penny in taxes between 1998 and 2005. And how did these corporations repay the favor? By shifting their labor investments overseas, to countries where the cost of labor is extremely low, and where few if any environmental protection laws exist.

Cisco just released their international salary report showing that the average annual salary of their technical professionals in India ($14,508) is just 1/4 of what their American counterparts make ($62,993). And yet their Indian employees work 56 hours per week, on average — that’s 25% more hours than their American counterparts (45 hrs).

To rub some serious salt into the wounds, the Wall Street Journal recently reported that U.S. corporations (not even including Wall Street Banks) were sitting on close to $2 trillion in cash — the highest corporate cash reserves in over 50 years! — and still refuse to hire in the United States:

Rather than pouring their money into building plants or hiring workers, nonfinancial companies in the U.S. were sitting on $1.93 trillion in cash and other liquid assets at the end of September, up from $1.8 trillion at the end of June, the Federal Reserve said Thursday. Cash accounted for 7.4% of the companies’ total assets—the largest share since 1959.

The cash buildup shows the deep caution many companies feel about investing in expansion while the economic recovery remains painfully slow and high unemployment and battered household finances continue to limit consumers’ ability to spend.

Yet, Republicans contend we must deregulate our industries further to help corporations cut their costs — at the expense of the environment and consumer protections — and desist from demanding they pay their fair share in taxes — all so that they will have the money they need to “create jobs”.

NO informed American — outside of wealthy individuals and corporate profiteers — could possibly support the Republican Party’s economic policies.

Which begs the question: how does a political party, which serves only the interests of its wealthiest contributors, continue to successfully legislate policies that work against the very interests of the American people?

Since their ideology is unsupported by the facts, they hire “word doctors” who coin misleading phrases to be repeated over and over again. Phrases that are both simplistic and somehow ‘intuitive’ to a non-discerning public.

This has remained their tried and true method for selling destructive economic policies to the American people. Take Frank Luntz, probably the most famous of all conservative “word doctors”. He coined the phrase “government takeover of healthcare”, which became the talking point for the Republican Party during the health care reform debate. It helped spur the Tea Party into storming Democratic town hall meetings during that period — terrified that “Marxists” were coming after their Medicare.

Their current economic play-script is inundated with two phrases: “job creators” and “investors” — to be used in place of “corporations” and “wealthy individuals”. These phrases — more or less the equivalents of “fair and balanced” being used to describe Fox News ‘reporting’ — are now the cornerstone of the entire Republican economic policy narrative.

Take Rep. Darrell Issa (R-CA), the Chairman of the House Committee on Oversight and Government Reform. Virtually every sentence that comes out of his mouth includes the phrase “job creators”. Check out his Twitter account and count the tweets where he reiterates the phrase “job creators”. In fact, he created a website called where he asks “job creators” to tell him what kinds of consumer protection regulations he should dismantle on their behalf.

The guy is a corporate lobbyist’s wet dream.

And our obsequious President — instead of showing leadership on this issue and dismantling this fictitious narrative — first capitulated on extending Bush tax cuts for the wealthiest 2%, then capitulated to Issa back in January on the argument that deregulation helps create jobs. In doing so, he legitimized what he knows to be untrue, making it next to impossible for his party to now push for MORE regulation and RAISE taxes on wealthy corporations and individuals without immediately being branded as hostile to “job creators”.

The Conservative Party in Canada, having noticed the success their Republican counterparts across the border were having with this “job creators” phrase, quickly employed it as their own anti-tax slogan.

But make no mistake about it. Our current economic plight was created by:

  • Bush’s deregulatory policies leading to a financial meltdown, and the ensuing AIG and TARP bailouts.
  • Bush’s misleading us into unnecessary & expensive wars.
  • Bush’s granting the wealthiest 2% nearly $3 trillion in tax cuts over the last decade.
  • Two-thirds of all corporations having evaded paying a single penny in taxes from their trillions in profits over the last decade.
  • Corporations having moved our higher paying jobs overseas to low-cost labor countries.

It is not due to a lack of investing capital by cash-hoarding, tax-evading corporations and the wealthiest 2% (the so called “job creators”) — which remains the Republican rationale for cutting taxes and deregulation.

Yet, somehow the lives of the rich and powerful keep getting easier — more comfortable — while the burden for the reckless calamity they unleashed on this country slowly, but surely — thanks to a combination of an emboldened right-wing and a compliant, timid President — gets shifted onto the backs of the American people in the form of harsh austerity measures.

Milton Friedman’s legacy continues to haunt us.