Accounting

 

Abstract

This paper provides an explanation of why worker cooperative startups are rare. If true worker ownership is to be maintained in the startup period where losses occur, members face either a 'pay to work' or 'expected investment loss' problem. Founding members must either pay money to cover the losses resulting from their labor, or make investments upfront which will be expected to decline in value as losses occur. These two issues are completely foreign to modern finance and current labor practice, and also ignored by the worker coop community.

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The Hudson Valley Current is an example of a local alternative currency or a complementary currency.
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There is a problem with corporate governance at traditional capitalist firms that often goes unmentioned in discussions of our current social and economic ills. It's a problem that I have reason to believe also effects some of our largest co-ops. It is a perverse dynamic that has lead to extremes of income and wealth inequality, and it is all the more pernicious for being largely invisible. (I'm going to have to dive into the weeds a little bit to get to where I'm going, but stay with me and I promise you, this will come back around to co-ops.)

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