ss 1,2

prout.econ

Protection for Cooperatives

October 3, 1995

Q: It is mentioned in Prout social philosophy that cooperatives should be given special protections or assistance. Is this because they are less efficient than private enterprises in terms of productive efficiency, or because private enterprises may create a difficult environment for the establishment of cooperatives?

It is to promote the establishment of the cooperatives. Cooperatives may be more efficient than private industry. It is not like a commune. Communes will be less efficient, but cooperatives will be more efficient once they are established. But with the greed of capitalists, private ownership, which would squash the young shoots - the new companies that are cooperatives, the new cooperative development - will not give them money, will not support their development. And when they move up, they will step on them before they can gain a hold. This kind of competition will make development of cooperatives very difficult, and that is why it was said there should be special support for these cooperative developments.

As far as running once they are up and going, they will be more efficient than capitalist systems because there will not be the element of greed. Greed reduces efficiency, though in the beginning it may appear to enhance it as to work for greed will be highly motivating. The workers will work very hard in the beginning, but in the end the greedy capitalists will take from their workers, take from everyone. Then who will benefit, who will profit? All the hard work is for naught, and so the bitter feelings are there. In the cooperative they too have put their labor, but they will get the reward, and it will not go just to the greedy hands of a few.