Futurism, Part 4: Economics

Here's an idea.

Assume we have widespread, nigh-universal unionization, and companies are still run by executives. But executives still have a tendency to fuck up. So what happens if a company goes under? Or, what happens if a company violently violates the terms of it's labor contracts?

Suppose a bill is passed where in this case, the government takes control of the company, wipes out the shareholders, and takes the company into receivership. It becomes an adjunct of the government. At this point, the government gives the union the option of buying back the company at some fair price (actual price of assets, cost of wiping out shareholders, I don't know) with the offering of a loan to facilitate the transaction. If the union declines, the company simply continues on nationalized, and then the government either runs the business, breaks it up and sells parts or sells it whole as it sees fit. This creates a heavy impetus for the union to buy back the company.

If the union agrees to buy it back, the corporation is reorganized as a cooperative. Instead of a board made up of chief shareholders or whatever, they are elected by the unions to termed periods (probably without term limits) . The CEO, or president, or what have you is either selected by the board as an employee or is also an elected official. This figure makes all other hiring decisions on down. Or the board does. I don't know quite how they do it up there.

Within this system, every employee down to mail clerk is assigned a certain share or number of shares of the company, which is the degree to which their position grants them ownership of the company. The employees own the company, and the are sole owners. After this point, compensation will probably differ from cooperative to cooperative, but likely each employee with be assigned a base salary adjustable in terms of the relative worth of their work (some jobs are more important than others), or seniority, or other concerns, then a "bonus," which is their share of profits, determined by the percentage their shares constitute within the company. Shares may be added with seniority or importance of position, but they are not allowed to be traded for capital. Different companies will probably come to their own decision about how much of profits will go into bonuses, or advertising or expansion, or if they will even bother with a base salary or just pay everyone from some percentage of income. Different companies and union cultures will dictate different things.

The existence of these cooperatives will lead to the encouragement for the creation of outside cooperatives, where workers or even people creating a start-up, albeit people loyal to socialist principles, will make their new ventures nascent cooperatives. Government loans in starting up new ventures will be more generous to such institutions.

Also, after the next financial crisis, or whichever one comes after Single Payer, we'll just nationalize all the major financial institutions, and run them like cooperatives, as an effective part of the national government. Thus will credit flow without need for a profit margin. It will be like the postal service.

Now, how to account for and continue innovation? One, we will boost funding for public universities, making them capable of shouldering a larger portion of the innovation pool. Systems will be set up to make sure that individuals are rewarded for their contributions to various fields, though with the government, instead of corporations, controlling the patents, it will be easier for useful drugs to inexpensively aid those in need. There will also be a large variety of grants offered to private individuals to encourage the pursuit of possibly idiosyncratic topics not directly covered by the larger university systems.

There will be a full time welfare unemployment wage, set at what is determined as subsistence level. That is, you can eat and afford somewhere to sleep on it, but not much more, so you should probably get a job if you want to live comfortably. And of course to do so would be frowned upon, though many burgeoning artists begin their careers is such a state, arting all day in hovels with the bare essential devices of their trades.

You will still have to get car insurance in order to buy a car, and you will still have to pay for it out of pocket. It's your toy.

By the way, this will all occur in the U.S., where power will, obviously, reside more and more with the Federal government, though decentralized across it's various webs of agencies. Europe will stay quite decentralized, akin to America under the Articles of Confederation. The various countries will either stay much as they are now or undergo widespread nationalization and hence rationing. Or maybe that's just in the eastern bloc. I don't really know the nature of Europe well enough to really think where they will go. A part of we suspects many of them will stay in the social democracies they have now, seeing no need to change, while ironically America will have become more socialistic, while still being more individualistic (personally I don't see these values as in conflict in any way). While Europe focuses on something like redistribution, the system America arrives at will be based on making sure individuals received just compensation for the actual value of their work. America might even have a flat tax, at least for the range of incomes possible within government or cooperative work, based on such reasoning (or it might be better to say, because the system is accurate). Collectivism vs. individual equality. Or something.

The American Cooperative Act will be passed sometime in the last quarter of the twenty-first century.