Articles

A PROUT perspective on Cooperatives

PROUT’s economic structure consists of three tiers: key industries, such as electric utilities, are owned and operated by the local or state government, medium and large scale enterprises which operate as cooperatives and are owned by the workers, and small-scale private enterprises owned by individuals. The main defect of capitalism today is that it has created a profit-driven and centralized economy which consolidates economic power in the hands of a few individuals and a few large corporations. These monopoly corporations, where most people are employed today, would be transformed into cooperatives in a PROUT economy.

The Mondragon coops in Spain have demonstrated that co-ops are the most effective way to reduce inequality and maintain full employment. Studies by Professor Jaroslav Vanek at Cornell University have also shown that a cooperative structure is the most efficient way to run large-scale businesses. Today, many progressive and even some conservative thinkers suggest that the corporate sector should be replaced by cooperatives.

A PROUT perspective on Cooperatives