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The problem is, shareholders can do something cooperatives cannot - they can operate at a substantial loss, effectively indefinitely, with the knowledge that th
by pasabagi 6y ago
The problem is, shareholders can do something cooperatives cannot - they can operate at a substantial loss, effectively indefinitely, with the knowledge that they can get their profit by selling the share.
Amazon, for instance, ran at a net loss for much of its history. I don't know how a workers cooperative would manage this.
Secondly, in capitalism, capital is concentrated among a small number of people, who are often friends. Shareholders therefore often help with raising further capital, since they are always from the capitalist class. So a worker's cooperative won't be as good at raising funds.
- jacobr1 6y agoNot the full answer, but loans. Trading equity isn't the only way to get a pile of cash. It isn't even the most common way.
- nunez 6y agoBusiness and (especially) consumer lenders are, by and large, much more risk-averse than investors, almost by definition. They would absolutely not be okay with near-indefinite loss; they would never regain their principal!