Inequality in America

Paul Buchheit of has an excellent article on income inequality in America, Toward the Total Paralysis of an Unequal Society. What is not well understood was that you can’t protest your way out of this mess. You can’t tax your way out of it, because the top 1%, and more importantly the top 1% of the top 1%, don’t just have most of the wealth in the country, they control Washington, D.C., the courts, and the media. So long as there is a corporate business model there will be inequality and laws and even constitutional amendments won’t make us any more equal. The solution to a corporatist business model is a cooperative business model. When everyone is an owner then no one can have too much power. Sure, there will always be some people who make more than other, but it will be because they earned their wealth. In a corporatist environment the wealthiest people get that way because they have the power to take from their employees the share of profits that their work produced. In a cooperative enterprise, they are the owners and can divide up the profits in a fair manner because they have the power to do so. Best of all, you don’t need anyone’s permission to start a cooperative. While government help with seed money would be most helpful, it isn’t absolutely necessary. If skilled unemployed people pooled their money together they could create a cooperative enterprise and never worry about unemployment again. And, because cooperative employees can make more money than their corporate compatriots they will prove attractive to employees in general. Read the novel Take the Pilgrim Road to see how this can be done.


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