[Cross-posted to Front Porch Republic]
If future historians wish to find some silver lining in COVID-19, the rise in mutualism in response to the shut-downs and dislocations it made necessary may be a good candidate. Community
gardens, neighborhood associations, right-to-repair networks, business co-ops,
crowd-sourcing approaches to providing health care and jobs and basic financial
support: all increased in number and reach over the past 15 months, sometimes
greatly. Examples can be found everywhere, from major
American metropolises to small Welsh towns. To be sure, the pandemic has not transformed the American economy into a 21st-century version of Spain's famed Mondragon (the worker cooperative founded by the Catholic priest José María Arizmendiarrietain in 1956 in accordance with the principle of solidarity, which has flourished and been much imitated ever since). Still, over the past year business
advisory groups, scholars,
and think
tanks have more and more often embraced the local
and the cooperative as crucial for charting a sustainable, post-pandemic path
forward. Whether this burst of interest in mutualist economic alternatives will
last remains to be seen--but at the very least, those who have long worked to build
these alternatives ought to be feeling some gratification right now.
This shift hasn’t been solely the result of the pandemic, of
course—more democratic and decentralized economic forms, and the arguments on behalf of
such, have been achieving greater prominence for well over a decade now. This
prominence has inspired some writers to look back, allowing those who have long
been refining their communalist, mutualist, and cooperative alternatives a chance
to make their case. Perhaps by studying these
cases, and thereby adding to the foundation of this shift, we can strengthen it, or even encourage ourselves to get involved in these projects (or start our own!). But if
that strengthening is to happen, it will require, I think, a clear sense of what these
alternatives are premised upon, and how those premises prevent them from
falling into centralized, capitalist ruts.
But before premises, some particulars: what is meant
by mutualism and cooperativism, and why should they be understood as standing distinct from the usual capitalist routines of our economy? The
simplest answer is that any organization of economic activity that has woven egalitarian
and communitarian practices into their daily operations—whether in terms of ownership,
production, decision-making, pricing, wage scales, distribution, or anything else—is, to one
degree or another, pursuing a path which gives place to something other than
profit-maximization and consumer-individuation, and thus is departing from the ideal
capitalist form. That doesn’t mean that profit and consumption never matter to
communes or co-ops or credit unions or anything else crowd-sourced; the human
desires and pressures that give rise to markets can’t ever, and shouldn’t ever,
be ignored. And by the same token, it's not as though the capitalist form has ever existed anywhere solely as a pure ideal, without any concern for community or equality. The point to grasp is simply that mutualist economic alternatives emerge organically, democratically, as people confront the failures of the market and work out ways to change or improve or work around them. They are, by definition, works of compromise, though no less aspirational for all that.
Thus a “mutualist economic alternative” could be something
as formal as a utopian commune, with people living and eating in the same
buildings, satisfying their limited needs entirely through agrarian autarkic practices. Or it could be something as
informal as a group of neighbors spread out over a few suburban blocks, who got to know each other through church or work or their kids' school, who all
share a single lawnmower, rotated according to a vaguely defined schedule,
with everyone filling it up with gas when they finish using it. The
pandemic may not have provided us with many more of the former, but much evidence
suggests that the past 15 months (or, for that matter, the past 13 years), we’ve
been seeing more and more of the latter. (The economist Juliet Schor noted this slowly emerging transformation--which she called the shift towards "plenitude"--over a decade ago.)
The one thing this enormous range of local and collective actions have
in common is that they are all, as the late Marxist scholar Erik Olin
Wright thoughtfully labeled then, “interstitial.” Wright links together
religious monasteries, labor unions, Amish farming villages,
employee-owned businesses, mutual aid associations, and many more,
presenting them as all part of the distinctly non-revolutionary project
of “eroding” (not smashing--even the most convinced socialist probably knows
that this is and must remain a historical dead end--but rather resisting and taming and dismantling and escaping) capitalism. “We can get on with the business of building a new world, not from the ashes of the old, but within the interstices of the old” (How to be an Anti-Capitalist in the 21st Century [Verso, 2021], p. 63).
True, enlisting all co-ops, communes, credit unions and
crowd-sourcing networks into a single “anti-capitalist” project is a harder
sell for some than others. Consider two recent books, Nathan Schneider’s Everything for Everyone: The RadicalTradition That is Shaping the Next Economy and Sara Horowitz’s Mutualism: Building the Next Economy from
the Ground Up. Both are excellent. They are also quite different, despite
their shared, hopeful conviction that the “next economy” is going to be a more
democratic, more social, more cooperative, and more mutual one, and despite
essentially addressing a more or less identical range of alternative economic
forms. Most importantly, though, they both show, in different ways, the
difficulty, I think, of accepting the “project”-implications of what they
describe.
Schneider’s book
is the more comprehensive of the two. Published in 2018, Schneider explores the
whole economic and social history of people forming cooperative associations to
access markets, share information and resources, and strengthen their
communities. The book is full of insightful observations, beginning with the
dual inspiration of Elinor Ostrom’s important work on how communities manage
“common-pool resources” (key point: borders and enforcement mechanisms are essential) and the Roman Catholic catechetical teaching of “the
universal destination of goods” (which means, among other things, that “private
property is an aberration, though under the conditions of fallen human society…a
necessary arrangement”—pp. 20-21, 23-24). This mix of the practical and the
moral is exactly what those thinking about communitarian alternatives need, and
it shapes Schneider’s engagement with cooperative groups, businesses, and
organizations both locally and internationally. In following examples from
Kenya to Colorado, his awareness of the precariousness of communal
alternatives—the way they require both “a supportive, nourishing culture from
below and enabling policy from on high” (p. 14)—is a constant, and that’s
valuable, encouraging stuff.
I wonder, though, about Schneider’s perspective on building
cooperative alternatives to capitalism in today’s thoroughly globalized world. Given
both his generation (he was born in the 1980s) and his vocation (he is a
journalist and scholar of media studies), it is perhaps to be expected that
Schneider would spend large part of his book discussing the (arguably entirely
hypothetical) community-building potential of phone apps and crypto-currencies.
While he is fully conscious of how “the lords of the cloud” will never allow
the internet to become “an egalitarian commons of borderless, permissionless,
peer-to-peer productivity,” he nonetheless appears ambivalent about attempts
to reclaim the faded, real-world cooperative accomplishments (the grain elevators, the fisheries) of “sedentary
peoples,” with he and his family instead being committed to “staying as nomadic
as we can manage” (pp. 215-217). This is unfortunate, I think; it reflects a
disengagement with place which leads Schneider to be more enamored of whatever he
can designate as “half-socialist, half-libertarian”—really, anything that replaces
government with “cooperative mechanisms” (pp. 185-188)—than perhaps he should
be. The reality is that building sustainable alternatives must engage multiple
levels of governance, taxation, and regulation—what he elsewhere wisely calls
the “local, diverse, compromised legacies” of co-ops across the country and
around the world—if they are going to have the social and economic power to
maintain their ground. He is absolutely correct that “a generation gap divides
the cooperative movement today” (pp. 232-233); it’s a gap that I think he
recognizes his own place within, and one that I trust he will move out of,
eventually.
Horowitz’s book
similarly makes use of history to make an argument for cooperative alternatives
that is both practical and moral, but the history she makes use of is intensely
personal, something Schneider's writings could only invoke to a limited extent. Horowtiz’s
frankly remarkable family history (her father was born in 1918, and worked
closely his own father in building up union power for garment makers and others
in pre-New Deal days) allows her a perspective on the possibilities for
mutualism which is much needed in America today. Far from encompassing a wide
range of communalist endeavors, Horowitz sees mutualism as most obviously
something built by those looking to establish the conditions under which they
work under industrial capitalism—in other words, through the building of unions. While her history makes use of
Marx, Proudhon, Tocqueville, and many others, the heart of her historical
argument never really strays far from the way Roosevelt’s New Deal, through
legislation like the National Labor Relations Act, legitimated and empowered
the associational efforts of people like her grandfather and father, only later
to see that power taken away. As she somewhat rhapsodically describes those years:
[T]he success of Roosevelt’s top-down approach to social
change via government programs created the sweeping national
initiatives—the Civilian Conservation Corps, the orks Progress Administration, and so
on—that we associate with the New Deal today….But I see another important
element to the story. Roosevelt recognize the limits of what government could
accomplish on its own….Rather than build new institutions from scratch, he
looked at the ecosystem of mutualist organizations that already existed and
realized that unions were the perfect tools to find workers where they already
were….[The New Deal] would enshrine, protect, define, and bolster the labor
movement, and in particular the strategy of industrial unionism. Whereas
before…organized labor had been a diverse and idiosyncratic mutualist movement
that was constantly experimenting….Roosevelt had in effect given unions a “job”
in the post-New Deal economy. By putting a legal structure around the right to
collectively bargain, Roosevelt had given unions a mandate--to bargain for
higher wages--while also giving their economic model a regulatory backdrop….The
New Deal created the business model that let unions thrive through the middle
of the twentieth century (pp. 150-152).
Horowitz is not a labor historian, and there are many that
might dispute the mutualist sympathies she sees embedded in that legislation.
Still, her perspective--as the child and grandchild of labor organizers, she has an intimate understanding of the pre-political, associational, communal histories of
diverse workers striving to carve out for themselves a place in late 19th-
and early 20th-century industrial America--should be taken
seriously. In fact her tale, and the way she extends it into such practical
matters of raising capital and establishing revenue streams to support mutualist organizations, probably captures
the point of Schneider’s observation about alternatives to capitalism requiring
both a supportive culture below and enabling policy above better than any story
he actually shared in his own book.
Like many others who succeed in building alternatives,
though, Horowitz tends to see her particular alternative as a singular,
necessary answer. A life-long contract worker, who founded the Freelancers
Union and the Freelancers Insurance Company, she is quick to take
decentralization to an extreme: “We live in a decentralized economy, and the
next safety net will be no less decentralized” (p. 45). Her contempt for a
Democratic party whose demographic base today is mostly disconnected from unionization
and prefers national, redistributive solutions instead isn’t as great as her contempt for a Republican
party which has consistently worked to undermine union power...but it is pretty
great nonetheless. (Her story of how the FIC found itself discriminated against by President Obama's Affordable Care Act is one every reformer should read.) Her insistence that “[t]here’s no reason that proposals for
nationalized health care can’t co-exist with mutualism, but mutualist
organizations themselves—unions, cooperatives, mutual aid societies, faith
communities—are uniquely position to be the delivery mechanism for that care”
(p. 191) makes obvious sense…until one remembers that she is essentially
describing Canadian
Medicare with their Local Health Integration Networks, and now here come
the (basically accurate, I would say) accusations of “socialism” again, which Horowitz insists--wrongly, I have to say--“couldn’t
be more different” from her mutualist approach (p. 49). It would be interesting to know if Horowitz imagines a mutualist potential embedded in President Biden's American Rescue Plan Act, and if she doesn't, where exactly she thinks difference between Biden's ambitious and Roosevelt's actually lay.
These kinds of arguments--which really come down to what kind of "project" one is willing or unwilling to see one's alternative aspirations to encompass--all turn on the degree to which one understands these efforts in terms of people as opposed to ideas, and it is here where a return to Mondragon is helpful. Both Schneider
and Horowitz dedicate part of their book to the aforementioned Mondragon Corporation, and it is worth considering its example as an important complement--and perhaps correction--to some of their insights. Father Arizmendiarrieta, universally
known as “Arizmendi,” arrived in the Mondragon Valley of the Basque region of
Spain in 1941 and began to teach, with an emphasis on vocational skills and cooperative
techniques, with the aim of building up the collective wealth and the sense of
solidarity within his community. When he established, along with five
graduates of the school he’d established, the first Mondragon co-op, manufacturing
paraffin burners, his goal was--and remains for the next 20 years, until his death in 1976--to change lives by changing, cooperatively and mutually, the economic conditions within which those lives were lived. "The interesting and key thing," he wrote, "is not the cooperatives, but the
cooperators. Likewise, it is not democracy, but democrats. Not so much ideas as life experiences."
Since his death, Mondragon has expanded internationally, moving into multiple areas of
manufacturing, retail, and finance, with its mutualist and cooperative
principles mostly holding firm. For example, to enable to genuine mutual feeling
between workers and managers, wage differences are tightly controlled, with the
democratically chosen directors of different Mondragon cooperatives earning wages
no greater than 9 times that of the lowest-paid worker in the firm, with the
usual difference being held to 5-1. Unsurprising, many socialist thinker—including
Wright—have seen this successful commercial venture, the seventh wealthiest
company in Spain in terms of assets, as a vital anti-capitalist model for others as well.
Whether it is or
not will be argued about for as long as the terms themselves are debated. But
whatever its correct description, it is unfortunate that Arizmendi’s collected
Reflections—the which are only now finally being made available in
English thanks to a
translation project spear-headed by Solidarity Hall—weren’t available to
either of the authors discussed here, or so many others who strive to hold build
communalist or mutualist or cooperative economic alternatives. (Though Schneider provides a forward to the Solidarity Hall publication.)
Arizmendi and those who followed him have negotiated, experimented, tapped local
resources, lobbied national parties, and appealed to international bodies; they
have, in short, truly lived out Arizmendi’s profoundly pluralistic vision of cooperative
empowerment. In the end, if the goal is worker empowerment,
community solidarity, and Christian love, then focus first on the person, and who
cares what ideological category such a personalist focus falls under? The radical
possibilities of disparate alternatives which emerge over time and experimentation
must not be disregarded just because they seem to challenge accepted patterns
of economic behavior, whether left or right:
Our cooperatives must primarily serve those who wish them to be
bulwarks of social justice, and not those who see cooperatives as refuges or
safe spaces for their conservative inclinations….We cooperators have in our
minds the idea that the future society will probably have to be pluralist in
all aspects, including economics: the state and the private sector, the market
and the planned economy, various entities, be they paternalistic, capitalist,
or socialist, will be combined and coordinated. If we really believe in and
love people, their freedom, justice and democracy, we will need to treat each
situation, the nature of each activity, the level of evolution and development
of each community, on the basis of an approach that is overarching but not exclusive (Arizmendi, Reflections, p. 100).
Popular discourse in the United States today—as well as in many
places around the world—hasn’t been so open to alternatives to the liberal
capitalist mainstream for close to a century. Partly this is a result of the
economic catastrophes of recent years: the beginnings of the Great Recession 13
years ago, and of course the consequences of COVID-19 pandemic, beginning last
spring. But it is also the result of political leaders who have been willing to
forthrightly
identify themselves with different forms and degrees of anti-capitalism,
and even more so it is the result thousands of people--both those who have
labored, locally and collectively, over decades to hold on to and to share the
resources their communities and vocations and places have brought to them, as
well as those who are attempting, for reasons of both curiosity and
desperation, to rediscover these mutualist, communalist, and cooperativist
possibilities today. Being clear on the levels involved in building and
recovering such practices, and being willing to embrace their sometimes discomforting
ideological plurality and breadth, will be essential for anyone who hopes, in
the neighborhoods and churches and communities, to do their part. Schneider’s
and Horowitz’s books provide some excellent perspective and guidance, and I
strongly recommend them. But I also recommend contacting and learning from
those who are doing this collective, cooperative work, whatever they may call
it, wherever they may be. Whatever such hands-on learning involves and whatever ways it is described, Arizmendi would be proud.