Exploring Economic Philosophies and Visionaries: Owen, Thompson, and King

Humanizing the Economy John Restakis Kimberly Farnham TUL 560: Comm Econ June 10, 2013

Robert Owen He refused to separate the economic and political parts of society He wanted to create communities within businesses, with a beneficial environment. The issue was not the machine so much as the profit motive; not the size of the industrial enterprise, but the control of the social capital behind it.

Robert Owen Why his co-operations failed His model was paternalistic and authoritarian. It depended on him running the business His philosophy was flawed, as people are not strictly passive. He was inexperienced: giving loans to people who wouldn t pay them back, lacked any kind of legal protection

William Thompson He was critical of Owen because he saw him as paternalistic. He was the first to use the term socialist, and he used it as a way of distinguishing himself from Robert Owen. He inherited an estate when his extremely wealthy father died. He quickly moved in and was concerned for the wellbeing of those who worked for him.

William Thompson Main economic thoughts Land and capital property should be owned by the community that uses them to create wealth Private property only serves to pit people against each other Personal happiness and the just-ness of society are hinged on the alignment of self-interest and the interest of society as a whole.

Dr. William King He attempted to bridge the gap between Owen and Thompson His main difference from the two was that he viewed the community as being the most active participants in its own advancement His idea was to achieve this advancement gradually.

Dr. William Kings Premise Without labor, capital means nothing. Workers remain dependent on capitalists Workers need to store up enough capital in order to gain control of their own labor Co-operation is ESSENTIAL to making this work, as it just isn t feasible for a single worker to do this on his own.

Dr. William King Co-Operative Economy The group establishes a shop Capital is accumulated through weekly fees and from surplus from the shop Capital is used to build the Co-operative economy As the community grows, more shops are opened and work can be found for all in the community. At this point, surplus can be used to pay medical bills, pensions, school fees, buying land, and building houses.

The rules No creidt Select three people to act as trustees Weekly accounting of the business Only accept people who can be trusted as members Meetings should not be held in a bar, lest the members be tempted to drink the surpluses before they ve been earned.

Rochdale The Archetype 28 founding members and a 2 pence weekly fee In 4 months they d pooled enough money to open a shop two days a week that sold butter, flour, oatmeal, sugar and a few candles. It went on to grow exponentially, and is the community that co-operative supporters always point to.

Rochdale The Archetype This community imagined a mutually supportive community of independent small producers, exchanging their products without the manipulations of middlemen, free of the control of masters. At its heart this is still the vision that speaks to the aspirations of millions caught in the exploitative web of capitalism today. It is very simply a vision that asserts the primacy of human and social values over those of commerce. P. 40 This is why community, conceived as the fulfillment of God s grace, is so central to the mission of the church, to personal salvation and to the later evolution of liberation theology as a Christian injunction to fight for social justice. P. 41

Socialism and Marx Marx and Engels were influenced by Owen and Thompson. Unfortunately , the term Socialism has become synonymous with Marxism, which is only one versions of socialism. Though wildly popular, Marxism ultimately failed to recognize the social aspects of economic life.

Eduard Bernstein A friend and supporter of Marx However, he was much more willing to accept other forms of socialism than Marx was. He recognized that people weren t just going to jump into an economic system that was radically different. He saw co-operative s similarities to capitalism as an asset. However, he also recognized that they often lacked the competence to invest in new production facilities capable of extending the cooperative commonwealth into the wider economy.

Bernstein Why cooperatives have not succeeded: Lack of business skills to a larger level of success in the larger economy, and expansion. How to become the innovative organization in their field. Lack of R & D.