Economic Update with Richard D. Wolff
Episode: Worker Co-ops, Socialism's Future
Date: October 11, 2019

Overview

In this episode, Richard D. Wolff dives into the evolving meaning of socialism and its relationship with worker cooperatives. He explores the historical roots of socialism, its traditional emphasis on state ownership, and how modern socialists are shifting focus to democratic workplaces. Wolff argues that the real unfinished business of socialism, especially in the 21st century, is democratizing the workplace—an area that state-centered socialism largely neglected. He explains how worker co-ops represent a practical and political reimagining of socialist goals, offering both a critique of capitalism and a roadmap for a more equitable society.

Key Discussion Points & Insights

1. The Transformation of Socialism

[00:12–06:10]

• Early Socialism:
  • Originated as a response to the "fundamental unfairness" of capitalism, which concentrated wealth and power among a minority, leaving the majority with little (00:55).
  • Main solutions were (a) public ownership of the means of production and (b) state-led economic planning, substituting for private enterprise and markets (03:10–04:20).
• Global Spread:
  • Socialism became a global movement, present in some form in virtually every country (05:00).
  • Wolff notes, "There must be something about it that affects an awful lot of people in a positive way, because there's no other way to explain its growth." (05:17)
• The Critique of State Socialism:
  • The shift from private to state control did not eliminate exploitation or inequality.
  • "State officials are not a preferable minority to private capitalists." (09:23)
  • Changing who owns the means of production is insufficient if the workplace power dynamic stays the same.

2. The Problem: Unchanged Workplaces

[09:40–14:35]

• Workplace Authoritarianism Persists:
  • State socialism often retained hierarchical, undemocratic workplaces.
  • "We never changed the workplace. The place where people spend most of their lives...was left pretty much unchanged. It was still a small group of people who ran the business, telling everybody else...what to do." (13:22)
• Unfinished Task of Socialism:
  • True socialism requires transforming the workplace into a democratic institution.
  • "Democracy of the workplace is the unfinished business of socialism and has become the focus of what socialism will mean in the 21st century." (14:20)

3. Worker Co-ops: The New Focus

[17:15–36:00]

• Parallels to Political Democracy:
  • Just as societies moved away from kings and political dictatorships, economic democracy must replace economic autocracy.
  • "We got rid of the kings in politics, but we give them a regular coronation inside of the workplace..." (19:22)
• Worker Co-op Defined:
  • Democratic workplaces where decision-making power is shared among all workers, not hoarded by owners or boards.
  • This model respects individual skills without justifying domination or inequality in power:
    "The democratization of the workplace achieves that. Do we want someone to have a lot of skill? Absolutely...Does that require that because they have this or that skill, this or that education, they have the right therefore to dominate us? Not at all." (25:40)
• Addressing Common Objections:
  • Equality doesn’t mean ignoring differences; it means making decisions as a community, taking differences into account transparently.
  • Decisions about pay, working conditions, or distribution are made collectively and openly.

4. Economic and Social Benefits

[28:20–34:15]

• Reduces Economic Conflict:
  • If the distribution of wealth is collectively determined, it preempts the need for divisive redistribution battles.
  • "If we all participated...we won't have to fight about redistribution. We'll understand and have had our equal say in making those decisions." (32:40)
• Adaptability and Resilience:
  • Transitions to cooperative workplaces are challenging, but society has managed bigger transitions before.
  • "There's no reason to believe we can't manage them in the future." (34:43)
• Political Advantage:
  • Emphasizing workplace democracy sidesteps traditional anti-socialist arguments about state power.
  • "Their arguments haven't been developed against this. This is a way to advance the concept of...socialism." (35:10)
• Control Over the State:
  • Giving workers control over production also democratizes their power over the economy and, indirectly, the state.

Notable Quotes & Memorable Moments

• On Capitalist and Socialist Similarities:
  "The capitalists who denounce the state for being a dictatorship of a relatively small bureaucracy...are blaming something else that looks a lot like a kettle." (11:20)

• On the Unchanged Workplace:
  "If you don't transform the workplace, that unchanged workplace will undo the changes you were able to achieve in the realm of property or the realm of markets versus planning." (13:45)

• On Economic Democracy:
  "If democracy is good for us politically, it's, if anything, more important for us economically." (21:40)

• On Skill vs. Power:
  "Do we respect their differences? Yes. Does that require that because they have this or that skill, this or that education, they have the right therefore to dominate us? Not at all." (25:40)

• Against Justifications for Domination:
  "The way we relate to one another on the workplace, like the way we relate to one another in the community, has got to be built on a recognition of our differences, a recognition of our inequalities, and a respect for that in all of us." (23:52)

Key Timestamps

• 00:10–06:10: What is socialism? Traditional definition, global spread
• 06:10–14:35: Critique of state socialism, failure to change the workplace
• 17:15–21:40: Political democracy vs. economic autocracy, the persistence of undemocratic workplaces
• 21:40–27:00: What workplace democracy means; skill, difference, and respect
• 27:00–32:40: Collective decision-making on pay and workplace issues; preempting redistribution battles
• 34:15–36:00: The adaptability of society and the political advantage of focusing on co-ops

Conclusion

Richard D. Wolff presents a compelling case for rethinking socialism not as a state-centric project but as a movement focused on democratizing the workplace through worker co-ops. He argues this shift addresses longstanding critiques of both capitalism and state socialism, aligning economic organization with democratic values and offering new hope for economic justice in the 21st century.

For Further Engagement

Democracy at Work and Richard D. Wolff’s team encourage listeners to engage through their websites and social media for ongoing discussions, feedback, and updates.