Insight and inspiration in turbulent times.
Can the boom in cryptocurrencies help achieve inclusive, cooperative growth? That’s what Moeda, a cooperative crypto-credit banking platform seeks to accomplish. The group’s well on its way. It recently concluded an initial coin offering in August of this year that raised $20 million dollars.
Last week’s post on political economy attracted plenty of disagreement. Now of course this came as no surprise, and it was also not exactly surprising that most of the disagreement took the shape of strident claims that I’d used the wrong definition of socialism. That’s actually worth addressing here, because it will help clear the ground for this week’s discussion.
I do not disagree with Branko that the task is enormous; I have complete empathy with this perspective. Indeed, it is the single greatest problem of our century – how to enable human flourishing while reducing emissions and material throughput – and it demands our total focus. But let me offer three thoughts that give me hope.
The goal of the new economy is to meet the needs of all human beings while operating within ecological limits. It seeks to maximize the well-being of all species, human and other. Its proponents believe that economics is embedded in, and dependent on, the Earth’s ecosystems.
So economics isn’t a science. It also wasn’t founded by Adam Smith. What Adam Smith founded, rather, was political economy. You won’t hear much about that field of study these days, and that’s not an accident. Political economy, as the name indicates, explores the relations between wealth and power in a society.
For those who see worker cooperatives and other forms of economic democracy as the alternative to capitalist enterprises and the seeds of an alternative, egalitarian society, there are at least three paths one might envision to that egalitarian society.
Is continued growth and an industrial economy actually desirable and, a separate and different question, is this growth sustainable? Can growth continue? In the 1970s growing uneasiness about the ecologically destructive effects of the growth economy led a few economists and scientists who were sceptical that growth could continue for ever to look into this matter in more depth.
George Monbiot, a columnist for the British newspaper and website The Guardian, may be the most prominent champion of the commons that I’ve discovered in mainstream journalism today. He has long been a compelling, out-of-the-box thinker on all sorts of economic and environmental issues. Now he is introducing the commons to his large readership and explaining its importance and its historic neglect by economists and politicians. Bravo!
The world is on fire lately with the exponential growth of Bitcoin and other electronic cryptocurrencies. While some see these as speculative bubbles that are tied to nothing, used on the dark web to ransom hacked computers, and profligate users of electricity, others see Bitcoin and its ilk as our liberation from nation states and their central banks. Both could be true. Perhaps more important is that the platform underpinning Bitcoin, called blockchain technology, and later advances such as Ethereum, have the potential to completely transform the way that the world operates.
Tools born from the internet, applied across autonomous networks and movements seeking alternatives to capitalism, are providing the infrastructure of alternative societies. In the last of our specials on community currencies and alternative economies, we showcase FairCoop, a self-organized and self-managed global cooperative created through the internet outside the domain of the nation-state.
In summary, we have on the one hand, scientists insisting that the biosphere is being gravely disrupted by our excesses; on the other hand economists telling us that if growth stops, the economy collapses. So what is the civically minded citizen to make out of this?
The platform cooperativism movement intervenes at a moment of social crisis in the United States when ninety-four percent of jobs created over the past decade were not in the employment category. In 2016, over twelve million workers have made money on labor platforms. Much of that work is invisible with laborers often exploited, tucked away between algorithms. And over the long-term, as more labor markets shift to the Internet, it also matters that ownership of cloud services and social hangouts on the Internet is highly concentrated.
