Economic Update with Richard D. Wolff
Episode: Larger Social Changes to Support Worker Coops
Date: February 20, 2020
Host: Richard D. Wolff (Democracy at Work)
Overview
This episode centers on a well-considered criticism: that advocating the transition from hierarchical capitalist enterprises to democratic worker co-ops often underplays the importance of larger social changes needed to sustain such a transition. Richard D. Wolff responds by laying out the kinds of structural, community, and governmental shifts required to support a successful and lasting worker co-op economy. The conversation moves beyond the enterprise to broader social organization, interdependence, and collective responsibility.
Key Discussion Points and Insights
1. Responding to Criticism: Beyond the Enterprise
[00:17]
- Wolff acknowledges a critique that his previous work has focused too narrowly on the micro-level (the workplace), failing to address the wider societal changes needed for worker co-ops to thrive.
- He agrees that a transition to worker co-ops alone is not a panacea; a broader context is essential.
Quote:
"There has to be an inclusion in the decision making operation of people other than the workers in an enterprise, because they're not the only ones affected by what an enterprise does or doesn't do."
— Richard D. Wolff (02:09)
2. Democratizing Decision-Making: Including Community and Customers
[02:30]
- True democracy in the workplace means factoring in the interests of:
- The community surrounding the enterprise (residents, local environment)
- Customers and consumers affected by products and services
- Proposes new forms of organization and instruments to give these groups a voice alongside workers.
Quote:
"There has to be a way for the community, for the environment, for the people affected by what an enterprise does to have some input too. Otherwise it isn't democratic."
— Richard D. Wolff (03:20)
3. Inequality Among Worker Co-ops: The Need for Social Cohesion
[05:00]
- Acknowledges that, as under capitalism, some worker co-ops will succeed while others struggle, for a variety of reasons.
- Unlike capitalism, a co-op society shouldn't let the success of some worsen the struggles of others.
- Emphasizes collective solutions over competition and absorption, which breed inequality.
Quote:
"You've got to make a commitment socially not to allow one co-op's success to be connected to and in effect worsen another co-op's lack of success."
— Richard D. Wolff (06:01)
4. Separation of Work from Economic Security
[08:17]
- Calls for a key social shift: decoupling job/income security from the specific fate of a worker’s enterprise.
- Proposes that society guarantees both a job and income as a right, removing the anxiety and fear tied to workplace decisions.
- This helps people act in the broader social interest instead of self-preservation.
Quote:
"A job is a human right by virtue of having been born. You're going to have a job and an income."
— Richard D. Wolff (09:42)
5. Role of Government: Beyond Redistribution
[17:33]
- Government's role would not simply be redistribution from rich to poor, but ensuring fair distribution at the outset.
- Uses the analogy of sharing ice cream cones between two children to show that equal distribution from the start reduces resentment.
Quote:
"It's much better to distribute from the get go equally than to do so unequally and then impose a redistribution."
— Richard D. Wolff (19:20)
6. Collective Support & Profit Redistribution Among Co-ops
[21:00]
- Suggests most profits from successful co-ops should support less successful ones and provide universal social benefits (e.g., parks, infrastructure).
- Workers would accept this taxation, as they themselves might need support in the future, building solidarity rather than rivalry.
Quote:
"Let everybody learn that in whatever worker co-op you work, you're being benefited by the good performance of other worker co-ops, just as they will be benefited when it's your turn."
— Richard D. Wolff (22:00)
7. Supporting Transition, Building Institutions
[25:50]
- Social institutions (like the government) should reinforce workplace democratization by:
- Managing collective support among co-ops.
- Ensuring transitions don’t mean loss of livelihood.
- Community and state structures must work in tandem with enterprise-level democracy.
8. Historical Context: Parallels with Capitalist Transformations
[28:50]
- Draws parallels to capitalism’s own historical rise: as feudalism was replaced, broader social structures (like parliaments) were reshaped to reinforce the new system.
- Argues worker co-op movements must similarly seek and drive complementary social changes.
Quote:
"...A worker co-op based economy will change the larger society to reinforce its ability to serve the people that the democratization of workplaces is intended to rescue from the condition they suffer in capitalism."
— Richard D. Wolff (31:19)
9. Clarifying the Focus on Worker Co-ops
[32:00]
- Wolff reiterates why he emphasizes the transformation within workplaces: because, historically, leftists have neglected how enterprise structure abets or impedes true systemic change.
- Stresses that workplace democratization is essential but must be integrated with wider social reform.
Quote:
"...that's why we focus on it. But it's an addition to the issues of the larger society, not a substitute."
— Richard D. Wolff (33:42)
Notable Quotes and Memorable Moments
-
On the interconnectedness of social and economic reform:
"The democratization of one facilitates the democratization of the other." (27:30) -
On why anxiety about work should not be necessary:
"We have more than enough wealth and income to do that for everybody." (10:55)
Key Timestamps
- [00:17] — Introduction: Responding to criticism of a narrow focus
- [02:30] — Expanding democracy to include community and customers
- [05:00] — Addressing inequalities between co-ops
- [08:17] — Guaranteeing job and income for all
- [17:33] — The problem with redistribution vs. fair initial distribution
- [21:00] — How successful co-ops can support the broader system
- [28:50] — Parallels between capitalist and co-op societal change
- [32:00] — Why focus on workplace transformation is necessary
Summary
Richard Wolff’s episode is an in-depth response to those urging a more holistic analysis of transitioning to worker co-ops. He lays out a vision for a democratic economy where the needs and voices of workers, communities, and consumers are integrated. He advocates for state and community structures to reinforce and protect these new forms of enterprise, distinguishing his view from both capitalist and traditional socialist models by focusing on both internal (workplace) and external (societal) democratization. By making job security universal and social benefits collective, and spreading profits for the common good, he points toward a more stable, humane, and democratic economic future.