As a strong believer in the cooperative business model, it pisses me off to see this half-baked concept of health care cooperatives thrown into the public debate, thoughtlessly, for no other reason than to offer the appearance of an alternative to a public option. It pisses me off that the first real discussion or education that many Americans are getting about cooperatives is as a political chew-toy in this summer's debate.
For the record:
I am the manager of a rural electric co-op (13 years) and 8 years on its elected board before that.
My wife and I have five co-op memberships between us: 1 electric, 2 at our food co-op and 2 at our credit union.
I grew up in the neighborhood that is the nation's first housing cooperative, founded in 1927, The Amalgamated
Like I said, I believe in the cooperative business model.
Except not when we could be on the verge of meaningful change in how health care is provided, and the cooperative concept is used as a means to confuse, dilute, and befuddle the public and politicians alike.
My father was a family doctor who believed in universal coverage with all his heart. He advocated for Medicare when it was proposed, and was ostracized by the local medical community at the time for supporting socialized medicine. He died at a young age in 1972, and he too would be pissed off that we haven't gotten there yet, and that his adopted country (he was an immigrant) turned out to be so full of idiots and knaves.
Take it from me, a co-op guy:
- The public option is better than nothing.
- Medicare for all or whatever else you want to call single-payer is where we should be.
- Co-ops? Not for this.
But since the idea of cooperatives more generally may be getting a black eye from all of this, here's a quickie lesson:
The Rochdale Equitable Pioneers Society, founded in 1844, was the first modern cooperative:
Rochdale Pioneers
From Wikipedia, the free encyclopedia
The Rochdale Society of Equitable Pioneers, founded in 1844, was an early consumer co-operative, and the first to pay a patronage dividend, forming the basis for the modern co-operative movement. [1] Although other cooperatives preceded them[2], the Rochdale Pioneers' co-operative became the prototype for societies in Great Britain. The Rochdale Pioneers are most famous for designing the Rochdale Principles, a set of principles of co-operation that provide the foundation for the principles on which co-ops around the world operate to this day. The model the Rochdale Pioneers used is a focus of study within Co-operative economics.
The Rochdale Society of Equitable Pioneers was a group of 28 weavers and other artisans in Rochdale, England, that was formed in 1844. As the mechanization of the Industrial Revolution was forcing more and more skilled workers into poverty, these tradesmen decided to band together to open their own store selling food items they could not otherwise afford. With lessons from prior failed attempts at co-operation in mind, they designed the now famous Rochdale Principles, and over a period of four months they struggled to pool together one pound sterling per person for a total of 28 pounds of capital. On 21 December 1844, they opened their store with a very meager selection of butter, sugar, flour, oatmeal and a few candles. Within three months, they expanded their selection to include tea and tobacco, and they were soon known for providing high quality, unadulterated goods. Ten years later, the British co-operative movement had grown to nearly 1,000 co-operatives.
Cooperatives of all kinds (real co-ops at any rate) adhere to seven basic principles, which are an updated version of the principles established by the Rochdale Pioneers. I have these on the bulletin board by my desk. They truly guide cooperatives nationally and internationally.
What is a cooperative?
A cooperative is an organization owned by and operated for the benefit of those who use its services.
Cooperative values:
Co-ops value self-help, self-responsibility, democracy, equality, equity and solidarity. In the tradition of our founders, cooperative members believe in the ethical values of honesty, openness, social responsibility and caring for others.
The Seven Co-op Principals
1st Principle: Voluntary and Open Membership
Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political, or religious discrimination.
2nd Principle: Democratic Member Control
Cooperatives are democratic organizations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to the membership. In primary cooperatives, members have equal voting rights (one member, one vote) and cooperatives at other levels are also organized in a democratic manner.
3rd Principle: Member Economic Participation
Members contribute equitably to, and democratically control, the capital of their cooperative, At least part of that capital is usually the common property pf the cooperative/ Member usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing their cooperative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by their membership.
4th Principle: Autonomy and Independence
Cooperatives are autonomous, self-help organizations controlled by their members. If they enter to agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their cooperative autonomy.
5th Principle: Education, Training, and Information
Cooperatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their cooperatives. They inform the general public—particularly young people and opinion leaders—about the nature and benefits of co-operation.
6th Principle: Cooperation among Cooperatives
Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional, and international structures.
7th Principle: Concern for Community
Cooperatives work for the sustainable development of their communities through policies approved by their members.
Cooperatives are a major force in our economy, in energy, finance, agriculture, healthy foods and other areas. There are different types of co-ops formed for different purposes:
from website of National Cooperative Business Association
Types of Cooperatives
Consumer Cooperatives—Consumer cooperatives are owned by the people who buy the goods or use the services of the cooperative. They sell consumer goods such as food and outdoors equipment. They provide housing, electricity and telecommunications. And they offer financial (credit unions), healthcare, childcare and funeral services. Almost any consumer needs can be met by a cooperative.
Producer Cooperatives—Producer cooperatives are owned by people who produce similar types of products-by farmers who grow crops, raise cattle, milk cows, or by craftsmen and artisans. By banding together, they leverage greater bargaining power with buyers. They also combine resources to more effectively market and brand their products, improving the incomes of their members.
Worker Cooperatives—Worker cooperatives are owned and governed by the employees of the business. They operate in all sectors of the economy and provide workers with both employment and ownership opportunities. Examples include employee-owned food stores, processing companies, restaurants, taxicab companies, sewing companies, timber processors and light and heavy industry.
Purchasing/Shared Services Cooperatives—Purchasing and shared services cooperatives are owned and governed by independent business owners, small municipalities and, in some cases, state governments that band together to enhance their purchasing power, lowering their costs and improving their competitiveness and ability to provide quality services. They operate in all sectors of the economy.
Some Co-op statistics, probably a few years old:
* Cooperatives range in size from large enterprises, including U.S. Fortune 500 companies, to single, small local storefronts.
* Some 250 purchasing cooperatives offer group buying and shared services to more than 50,000 independents businesses.
* Cooperatives operate in every industry including agriculture, childcare, energy, financial services, food retailing and distribution, health care, insurance, housing, purchasing and shared services, telecommunications, and others.
* 255 telephone cooperatives provide service to 964,000 households.
* Approximately 900 rural electric cooperatives own and maintain nearly half of the electric distribution lines in the U. S., cover 75 percent of the land mass and provide electricity to 37 million people.
* More than 1,000 mutual insurance companies, with more than $80 billion in net written premiums, are owned by their policyholders.
* More than 6,400 housing cooperatives provide homes for 1.5 million households.
* Americans hold more than 350 million memberships in cooperatives, which generate nearly $79 billion in total impact from patronage dividends and refunds.
* There are more than 72,000 cooperative establishments in the United States providing over 2 million jobs.
* The top 100 co-ops generate more than $150 billion in revenues.
* Nearly 30,000 U.S. credit unions have 91 million members and assets in excess of $760 billion.
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Senator Conrad's "cooperative" alternative has gotten a lot of media attention in the past few days, and with it comes a lot of misinformation from the media about what co-ops actually are. Health care, at this time in our history, should be a public responsibility. Co-ops as local delivery businesses are fine, but not as a substitute for long awaited public (government) responsibility for assuring access to health care for all Americans.
Senator Conrad's proposal is disingenuous and half-baked. But I thought I'd use the opportunity to write a diary about a subject near & dear to my heart.