Tag: Mental Health

  • The Revolutionary Potential of Cooperatives

    The Revolutionary Potential of Cooperatives

    Too much of the political conversation is centred around distribution. For the left, this means steeper rates of progressive taxation and social spending. For the right it is the inverse, lower taxes—particularly at the high end of the wealth pyramid—and reduced social spending. The specific rates and policies have shape-shifted over the years but this dichotomy sets the parameter of political debate in the main. But it is a shallow dichotomy which provides tremendous benefit to the economic elites because it does not lay a finger to the seat of their domination. Let’s remember, how the pie gets sliced is almost irrelevant next to who owns the oven. 

    If there is one Marxist teaching that is conveniently taboo in mainstream discussion, it is that wealth and power exist first and foremost as economic relations. After Jeff Bezos’ joyride into suborbital space, the first people he thanked were his employees and customers who unwittingly “paid for all of this.” Of course, if those same people had a choice as to where their generated surplus was allocated, they probably wouldn’t sign it over to the vanity project of an eccentric billionaire.

    It is the economic relationship between Bezos and his employees that puts a material surplus squarely on his lap to play with. This relationship gives him command over market conditions and a vast army of labour, as well as a grotesquely outsized political sway. It is a Herculean task to pry this surplus from his lap with taxation because liberal governance grants enormous influence to “job creators” by way of the corporate lobby and political donations. 

    Marx said “to be radical is to grasp the matter by the root.”1 While taxation rates help to manicure the lawn, the enormity of problems posed by global capitalism demands an entire re-seeding. Progressive forces must apprehend the relations of production that first give rise to the corporate capture of government, the K-shaped economy, environmental destruction, the state of perpetual warfare. By transforming the economy from one that is authoritarian and competitive into one that is democratic and cooperative, matters of distribution and political equality resolve themselves on the new terms.

    A Catalogue of Crises

    Taking inventory of the problems that have plagued our capitalist society for decades, we see worker-owned enterprises (cooperatives) present themselves as a panacea. Waste and environmental decline, crisis-level mental health outcomes, community loss, job insecurity and high costs of living are a few that spring to the foreground. 

    On environmental outcomes, there is a structural benefit to workers owning their own workplace. The owners are not impersonal investors from gated communities afar, but members of the community in which they operate. Cooperative economic relations encourage superior environmental stewardship because worker-owners are more likely to avoid polluting their communities and the planet than impersonal investors and owners.

    Multiple studies demonstrate the pro-social tendency of cooperatives to prioritize environmental goals, reduce waste and allocate resources efficiently—especially when compared against capitalist firms. As one example, a cooperative bank in the UK was able to reduce downstream emissions of clients by 70% by providing financing for renewables, energy efficiency upgrades and carbon offsets.2

    In terms of mental health and community, the accelerated decline of both are not unrelated. It should be no surprise that a chronically-online society increasingly devoid of face-to-face interactions is manifesting symptoms of a “loneliness epidemic,” negatively affecting local communities and individual well-being. The negative mental health symptoms we observe today validate the psychoanalyst Erich Fromm’s five fundamental needs for mental well being: relatedness, rootedness and unity, transcendence, sense of identity and frame of orientation.

    Because of democratic decision making and a shared destiny amongst stakeholders, cooperatives offer the individual a community unto itself and create a vested interest in civic participation, addressing each of Fromm’s fundamental needs. The superiority of this model compared to capitalist corporations is reflected in higher rates of job satisfaction and happiness at work. At a national scale, widespread adoption of the cooperative model would enhance social cohesion, community engagement and improve productivity. 

    Artificial intelligence and automation are frequently cited as factors aggravating conditions of employment insecurity and precarious work. Productive technologies should not be feared, though. Workers that own their firms are incentivized toward technological efficiency and practical AI deployment because it saves labour time without impacting income. There is a longstanding capitalist contradiction regarding technological progression: employers covet it for the productivity gains, employees fear it over the ensuing layoffs. When employees become owners, this contradiction is resolved.

    Furthermore, worker cooperatives have demonstrated greater staff retention and job security, even in times of economic recession. Whereas capitalist firms often have an express fiduciary duty to prioritize the interests of the investment class over their workers, worker-owners are far more likely to set funds aside in periods of strong economic performance in order to stabilize incomes during periods of weakness. The structural difference between conventional corporations and cooperatives also sees workers accrue greater employment benefit coverage for their families and up to 80% above-market pay. A comfortable living wage is the demonstrated norm in mature cooperative formations.

    In one stroke, the cooperative model alleviates almost all of the civilizational problems pressing so hard on us today. Even political polarization, drug addiction and crime could be expected to crash downward with increased community building, financial security and social cohesion amongst the population. Rather than pitch socialism as a stoic alternative, cooperatives offer a visible pathway to transcending capitalism altogether; a world where wage labour is viewed as dimly as serfdom or slavery is right now.

    Laying the Soil

    But it is never so easy. For the apologists of capitalism, the usual retort is something along the lines of: “Nothing is stopping the formation of cooperatives right now. The market will decide if they are the superior model or not.” This falsely assumes some kind of fair marketplace where the best ideas, products and formations inevitably rise to the top. In reality, we live within a global system that doles out multi-trillion dollar subsidies to capitalist firms each year. Publicly funded and well-endowed schools of commerce glisten on campuses wherever a university is to be found. Banks raise low-interest debt and investment for hedge funds and publicly-listed companies, while giving relatively draconian terms to small businesses—and even worse for cooperatives, which are often denied loans. 

    Rosa Luxemburg described cooperatives as “small units of socialized production within the midst of capitalist exchange.”3 Worker owned enterprises must compete with conventional firms in the capitalist market but they do so with far less tools at their disposal. While they offer enormous pro-social and environmental benefits, this does not count toward GDP or rate of profit—the only measures of capitalist value, even in a world on fire. 

    The struggle to breathe under an avaricious economy thirsty for profit account for many of the shortcomings of the cooperative movement, including cases where wage labour and outsourcing is resorted to. But this does not mean cooperatives are a dead-end, they just have the wrong substrate. The history of capitalism, too, is pockmarked by failed attempts of merchant-run cities and bourgeois revolutions to shed their aristocratic chains, only to lose momentum and become subsumed again by dominant feudal relations.4

    Socialism will transcend capitalism in the West when a future revolution applies the lessons of China’s nation building state-owned enterprises and public planning; when the unimpeded direct democratic rule of the people has been won. Once community and environment take their place among the measures of wealth, new economic relations between associated producers and consumers can be organized. As Karl Marx said:

    If cooperative production is not to remain a sham and a snare; if it is to supersede the capitalist system; if united cooperative societies are to regulate national production upon a common plan, thus taking it under their own control, and putting an end to the constant anarchy and periodical convulsions which are the fatality of capitalist production—what else would it be but communism, “possible” communism?5

    Thanks for reading!

    Footnotes:

    1. Karl Marx: Selected Writings, Second Ed. trans. David McClellan (Oxford University Press, 2000): 77. ↩︎

    2. Melissa Scanlan, Prosperity in the Fossil-Free Economy: Cooperatives and the Design of Sustainable Businesses (Yale University Press, 2021): 261. ↩︎

    3. Rosa Luxemburg, Reform or Revolution? ↩︎

    4. John Bellamy Foster, “Capitalism Has Failed, What Next?” Monthly ReviewVol. 70, No. 9. ↩︎

    5. Karl Marx, The Civil War in France. ↩︎
  • Alienation

    Alienation

    This article is part of a series on classical Marxism.

    In the typical western city, one does not have to search very hard to find the signs: derelict buildings, littered streets, homeless with pockmarked faces pushing carts filled with bottles. Across North America, opioid abuse and a cost of living crisis have sent homeless populations climbing against a backdrop of city blocks scorched by wildfire, ground tremors from fracking, mass flooding by storm surges and condos of glittering glass. In 2018, Chris Hedges published one of the most potent illustrations of capitalist alienation with America, The Farewell Tour.

    In the book, he sets the table early: “Hurricane after hurricane, monster storm after monster storm, flood after flood, wildfire after wildfire, drought after drought will gradually cripple the empire, draining its wealth and resources and creating swaths of territory defined by lawlessness and squalor.”1

    Hedges then introduces us to Christine Pagano, a woman who fell into drugs during high school after her stepfather was caught sleeping with her 16-year-old classmate and her home life imploded. Years after experimenting with heroin, she would turn to prostitution in order to feed a $500 heroin habit and sold her body in Jersey City to Wall Street traders, business executives and bankers “who were the prostitutes’ main customers.”2 She shares that this was preferable to Camden, New Jersey, where “‘the poverty is so bad. People rob you for $5, literally for $5. They would pull a gun on you for no money.’”3

    Then there is Robin Rivera, the product of a troubled home who later earned minimum wage at a hair salon in Los Angeles. She accepted a proposition from a talent agent in the pornography industry in the hope of making ends meet. “‘They tied me up and hung me from the ceiling,’ she said,” adding that she was also electrocuted with a cattle prod. “‘They put a hook in my ass’” and “‘tied my ponytail to it. They tied my arms to a barrel. They tied my legs to a barrel. He put a vibrator on me…Five hours is a long time. For $900.’”4

    Depravities of this kind are rarely discussed in the media. This could be due to the sheer numbers of those who indulge—up to one-quarter of web searches and one-third of downloads relate to pornography, after all. But it is corollary to the economic imbalances and deprivations of the economic sphere, the “rough neighbourhoods” on the other side of the tracks in our cities or the beggars encountered at home and abroad. As noted in “Ecology,” capitalism turns both land and people into commodities—“venal objects”—and this becomes the lived experience for all-too-many in rich and poor countries alike.5 

    When Marx discusses “alien capital” confronting “alien labour,” he is spotlighting two economic processes which move on their own momentum, as though independent of human agency.6 Human beings are creative by nature and we define ourselves by conscious, self-directed activity. Under capitalism, this is rarely the case. Individuality and self-expression is seldom found in production; work is transactional and conducted under authoritarian oversight for a wage on which to subsist. In his Economic and Philosophic Manuscripts, Marx writes that “the need for money is therefore the real need created by the modern economy, and the only need which it creates.” It is this need of money that elevates exchange-value to the highest priority, with use-value of only secondary consideration to a profitable exchange. Work is reduced to a pursuit of that universal commodity, money, and it is only in that cramped space of time off the job when we are free to express ourselves, largely as consumers. Due to the energy consumed by employment, leisure itself is distorted and becomes a site of excess and expense. Born of this common need for money, we see an extension of products which appeal to our base instincts, subservient only “to inhuman, depraved, unnatural and imaginary appetites”—of the sort highlighted in the above paragraphs.7

    As psychoanalyst Erich Fromm interpreted Marx, “alienation leads to the perversion of all values.” Because economic aims are “the supreme aim of life, man fails to develop any truly moral values,” and “the riches of a good conscience, of virtues, etc.” are impossible as they lack monetary impetus.8 The capitalist system of production severs society from the splendour of nature and turns individuals into replaceable parts—whether they be numbered employees and managers or prostitutes and johns. Freethinking and meditative contemplation is thus muzzled with individuals crippled by a pursuit of exploitation and libidinous excitations. Downstream from a mountain of emissions and cheap labour are resort vacations and cruises, restaurants serving high-priced cocktails and IMAX movies with sensory-melting special effects. This is what passes through the free time of conforming consumers under capitalism today.  

    Engels saw this “spiritual-barrenness” through all echelons of society. Corporate conglomerates are the fountainhead of prepackaged, empty pleasures but there is a social context to it. Everyone seeking to maintain or improve their standing within the capitalist hierarchy ultimately become slaves to their own employment—even elite financiers and CEOs become “slave of his own capital and his own profit-getting.”9 Even the ruling class beneficiaries of capitalism’s wealth find themselves with limited agency when it comes to maintaining their standing. If they do not open mass markets, pollute, debt-shark or shrewdly exploit, they will simply be overtaken by a more capable servant of capitalist expansion.

    The total alienation of the individual by the ever-complex and expanding process of capitalist production is the reason behind mental health epidemics. In the United States, 90% of people believe there is a crisis of mental health and 20% experience acute symptoms. In Canada, almost half the population is estimated to experience episodes of mental illness by age 40. In Britain, depression is the condition most commonly encountered by the National Health Service and the instructor Mark Fisher observed: “Many of the teenage students I encountered seemed to be in a state of what I would call depressive hedonia…an inability to do anything else except pursue pleasure. There is a sense that ‘something is missing’—but no appreciation that this mysterious, missing enjoyment can only be accessed beyond the pleasure principle.”10 Supporting the Marxist theory of alienation are the many studies concluding that the more a country is penetrated by capital relations, the worse the mental health becomes. Fisher explains: “When it actually arrives capitalism brings with it a massive desacralization of culture. It is a system which is no longer governed by any transcendent Law; on the contrary, it dismantles all such codes, only to re-install them on an ad hoc basis.”11 The implication is that less-developed countries contain communitarian cultures that are less eroded by capital and experience lower rates of mental illness when compared to the hyper-competitive, technologically advanced and socially isolating realms of wealthy capitalist nations.

    But the task of building an unalienated, harmonious society necessary to individual freedom and human flourishing will not be accomplished by sliding backward on the development scale. Marx did not advocate for an anti-capitalist world, but rather, a post-capitalist one. This means negating the liberal order by incorporating capitalism’s high economic productivity while removing its deleterious effects on the social fabric and natural environment. Capitalist productive forces have brought humanity an enormous capacity to produce but an incredibly inefficient and wasteful manner of allocation. By exerting a conscious, democratic control over the production process, a material output could be allocated according to need rather than payment. The pursuit of exchange-values creates an alienating and immoral world but the pursuit of use-values reverses this effect. Houses to live in rather than speculate with. Medicine to save lives rather than profit. Nature for its aesthetics and life-giving functions rather than plunder. Food grown for nutritional quality instead of an ultra-processed quantity.

    Use-values demand broad input from consumers and workers, they demand the elimination of noxious products and exploitative services from production, they demand positive, humanistic outcomes from artificial intelligence, they promote free time and activity that nurtures the latent talents within all individuals. In other words, they place moral virtue, community, family, mental tranquility and natural beauty into the heart of economic production. 

    A post-capitalist and unalienated free association is one where people are their own masters, liberated from state authority, irrational market fluctuations and corporate dictates. To quote Marx, “the associated producers regulate their interchange with Nature rationally, bring it under their common control, instead of being ruled by it as by some blind power; they accomplish their task with the least expenditure of energy and under conditions most adequate to their human nature and most worthy of it… Beyond it begins that development of human power, which is its own end, the true realm of freedom, which, however, can flourish only upon that realm of necessity as its basis.”12

    Further reading:

    Karl Marx, Economic and Philosophic Manuscripts of 1844.

    ———–


    1. Chris Hedges, America, The Farewell Tour (Simon & Schuster, 2018), 34. ↩︎

    2. Ibid, 62. ↩︎

    3. Ibid, 65. ↩︎

    4. Ibid, 129. ↩︎

    5. John Bellamy Foster, Marx’s Ecology: Materialism and Nature (Monthly Review Press, 2000), 74. ↩︎

    6. Karl Marx, Grundrisse (Penguin, 2005), 266. ↩︎

    7. Karl Marx, Economic and Philosophic Manuscripts of 1844. ↩︎

    8. Erich Fromm, “Alienation,” Marx’s Concept of Man. ↩︎

    9. Friedrich Engels, Anti-Dühring and Other Works (Graphyco Editions, 2021), 157. ↩︎

    10. Mark Fisher, Capitalist Realism: Is There No Alternative? (Zero Books, 2009), 21-22. ↩︎

    11. Ibid, 5-6. ↩︎

    12. Karl Marx, “Chapter 48,” Capital: Volume Three. ↩︎