Co-ops

Chris Dillow gives Us an excellent evaluation of why Co-ops are not more numerous. Every one of his listed reasons for a shortage of such organizations is quite valid. He fails to present the two most important, though, which I will try to present. The First is the lack of Insight, or otherwise defined as lack of the business acumen to discern the full benefits of co-operative union for Market purchase and Sale success; this requiring knowledge of Markets, formal Accounting practice, unified Direction of Market activity, and knowledge of Investment capability for directional exploitation. Labor may possess all of these attributes, but recognition of these attributes must be common knowledge to the entire group to properly delegate Management staffing; lack of the previous will lead to the breakdown of the Co-op.

The second rationale to be presented is the loss of Productive effort. All members of a Co-op association must involve themselves in the Management formula, which is mostly unknown, and where much Time must be devoted to learning its elements. Failure to do so results in reliance on Hired Help which requires intelligent education to supervise, or inability to find qualified personnel. It is equivalent to taking on a moonlighting Job, where the eventual Pay is indeterminate. Distraction from One’s primary occupation has known losses, while assumption of the new duties provides no guaranteed increase of Income; all within a Schedule which must be maintained for success.

Chris criticizes the feudal concept of leadership, but the Business world is fundamentally based upon such a leadership; it is hard to separate such leadership from the Production process, and maintain the Speed necessary to successful Business operation. Co-operative associations functionally need a ‘Guiding Light’ who is willing to assume the managerial functions necessary for successful operation. I am quite sure these associations will attain greater expansion in the future, due to the greater educational levels of Labor and the availability of online managerial Accounting formats, but I also think there must be a lower-Cost decentralization of the Market system; something based upon online rapid transit of managerial Job performance, inside a specialized Service sector. lgl