Gar AlperovitzALPEROVITZ AND DUBB: IF YOU DON’T LIKE , AND YOU DON’T LIKE SOCIALISM, WHAT DO YOU WANT? and Steve Dubb If you don’t like capitalism & you don’t like socialism... what do you want?

THE POSSIBILITY OF A PLURALIST COMMONWEALTH AND A COMMUNITY-SUSTAINING ECONOMY

It is increasingly obvious that the United For the most part, serious scholars and ac- States faces systemic problems. When protestors tivists have addressed the possibility of progres- occupy Wall Street and Ben Bernacke, the Chair- sive change in capitalist systems from one of two man of the Federal Reserve, not only responds to perspectives: The “reform” tradition assumes that the protestors, but actually casts the actions of the corporate institutions remain central to the design protestors in a favorable light, it is clear these are and structure of the system and that “politics” in not ordinary times: Testifying to the Joint Economic support of various “policies” (e.g. taxation, spend- Committee of Congress, Bernanke observed that ing, incentives, regulation) will contain, modify and [OLWYV[LZ[VYZ¸ISHTL^P[OZVTLQ\Z[PÄJH[PVU[OL WYVISLTZPU[OLÄUHUJPHSZLJ[VYMVYNL[[PUN\ZPU[V This paper has been prepared by the Democracy Col- [OPZTLZZHUK[OL`»YLKPZZH[PZÄLK^P[O[OLWVSPJ` laborative at the invitation of the organizing committee response here in Washington. And at some level, I for the American Sociological Association’s 2012 annual meeting. The meeting’s theme is “Real Utopias”: can’t blame them.”1 Income and wealth disparities have become The goal is to elaborate utopian ideals that are severe and corrosive of democratic possibilities. grounded in the real potentials of humanity, The economy is in tatters. Unemployment, pov- utopian destinations that have accessible erty, and ecological decay deepen day by day. way stations, utopian designs of Corporate power now dominates decision-making viable institutions that can inform through lobbying, uncontrolled political contribu- our practical tasks of navigating tions, and political advertising. The planet itself is a world of imperfect conditions for threatened by global warming. The lives of millions social change. are compromised by economic and social pain. For more information about Real Utopias and the Ameri- Our communities are in decay. can Sociological Association, see the conference website Is there any way forward? at: www.asanet.org/AM2012/

democracycollaborative.org community-wealth.org garalperovitz.com 1 ALPEROVITZ AND DUBB: IF YOU DON’T LIKE CAPITALISM, AND YOU DON’T LIKE SOCIALISM, WHAT DO YOU WANT? control the inherent dynamic of a corporate domi- parts of the current American system, and that they nated system. Liberalism in the United States and are likely to become of continuing— and potentially social democracy in many countries are represen- system-altering—force over time. tative of this tradition. The “revolutionary” tradition assumes that change can come about only if the One area where this logic can be seen at major corporate institutions are largely eliminated or work is in the financial industry. At the height transcended, usually but not always by violence— of the financial crisis in early 2009, for example, often precipitated by a crisis collapse of the system, some kind of nationalization of the banks seemed leading to one or another form of revolution. WVZZPISL  0[ ^HZ H TVTLU[ 7YLZPKLU[ 6IHTH told banking CEOs, when his administration was But what happens if a system neither “reforms” “the only thing between you and the pitchforks.”2 nor collapses in “crisis”? ;OL7YLZPKLU[JOVZL[VVW[MVYHZVM[IHPSV\[LU- gineered by Treasury Secretary Timothy Geithner This is essentially where the United States and White House Economic Adviser Lawrence ÄUKZP[ZLSM[VKH`7\[ZSPNO[S`KPMMLYLU[S`^LILSPL]L Summers; but that was not the only choice avail- the United States is entering a potentially decades- able: Franklin Roosevelt attacked the “economic long period characterized by a situational logic of royalists”3 and built and mobilized his political this kind. In a context of “neither reform nor crisis base. Obama entered office with an already or- collapse” very interesting strategic possibilities may ganized base and largely ignored it. sometimes be viable. Such possibilities are best un- derstood as neither “reforms” >OLU [OL UL_[ ÄUHUJPHS (i.e. policies to modify and crisis occurs – and in the control, but not transcend cor- BUT WHAT HAPPENS IF A judgment of many experts, porate institutions) nor “revo- SYSTEM NEITHER “REFORMS” it will, perhaps soon – a dif- lution” (i.e. the overthrowing NOR COLLAPSES IN “CRISIS”? ferent political resolution of corporate institutions), but with more systemic chang- rather a longer term process that is best described ing consequences may well be possible. (If not the as an evolutionary reconstruction – that is, systemic next crisis, the one after that, or the one beyond…) institutional transformation of the One option has already been put on the table. In that unfolds over time. 2010, thirty-three Senators voted to break up large Wall Street investment banks that were “too big to Like reform, evolutionary reconstruction in- fail.”4:\JOHWVSPJ`^V\SKUV[VUS`YLK\JLÄUHUJPHS volves step-by-step nonviolent change. But like vulnerability; it would alter the structure of institu- revolution, evolutionary reconstruction changes the tional power. basic institutions of ownership of the economy, so that the broad public, rather than a narrow band Nor is an effort to break up banks, even if suc- of individuals (i.e., the “one percent”), increasingly cessful, likely to be the end of the process. The owns more and more of the nation’s productive as- TVKLYU OPZ[VY` VM [OL ÄUHUJPHS PUK\Z[Y`·[V ZH` sets. nothing of anti-trust strategies in general—suggests that the big banks, even if broken up, will ultimately We suggest that such processes of evolution- YLNYV\WHUKYLJVUJLU[YH[LHZº[OLIPNÄZOLH[[OL ary reconstruction are becoming observable in many SP[[SL ÄZO» HUK YLZ[VYL [OLPY KVTPUH[PVU VM [OL Z`Z-

2 ALPEROVITZ AND DUBB: IF YOU DON’T LIKE CAPITALISM, AND YOU DON’T LIKE SOCIALISM, WHAT DO YOU WANT? tem. So what can be done when “breaking them the investment, one or more major banks would, in up” fails? fact, have become essentially public banks.9

The potentially explosive power of public an- Nor is this so far from current political tradition NLY H[ ÄUHUJPHS PUZ[P[\[PVUZ ^HZ L]PKLUJLK PU 4H` as many think. Unknown to most, there have been 2010 when the Senate voted by a stunning 96-0 a large number of small and medium-sized public margin to audit the Federal Reserve’s lending (a pro- banking institutions for some time now. They have vision included ultimately in the Dodd-Frank legisla- ÄUHUJLK ZTHSS I\ZPULZZLZ YLUL^HISL LULYN`JV tion)—something that had never been done before.5 VWZ OV\ZPUN PUMYHZ[Y\J[\YL HUK V[OLY ZWLJPÄJHSS` Traditional reforms have aimed at improved regula- targeted areas. There are also 7,500 community- tion, higher reserve requirements, and the channel- based credit unions. Further precedents for public ing of credit to key sectors. But future crises may banking range from Small Business Administration bring into play a spectrum loans to the activities of the of sophisticated proposals U.S.-dominated World Bank. for more radical change of- FUTURE CRISES MAY BRING In fact, the federal govern- MLYLKI`ÄN\YLZVUIV[O[OL INTO PLAY A SPECTRUM OF ment already operates140 left and right. For instance, SOPHISTICATED PROPOSALS banks and quasi-banks that H ¸3PTP[LK 7\YWVZL )HUR- FOR MORE RADICAL CHANGE provide loans and loan guar- ing” strategy put forward by antees for an extraordinary conservative economist Laurence Kolticoff would range of domestic and international economic ac- impose a 100% reserve requirement on banks.6 tivities. Through its various farm, housing, electric- Since banks typically provide loans in amounts ity, cooperative and other loans, the Department many times their reserves, this would transform of Agriculture alone operates the equivalent of the them into modest institutions with little or no capac- seventh largest bank in America.10 And just recently, P[`[VÄUHUJLZWLJ\SH[PVU0[^V\SKHSZVUH[PVUHSPaL under pressure from American business, Congress the creation of all new money as Federal authorities, re-authorized the Export-Import Bank to support YH[OLY[OHUIHURLYZKPYLJ[S`JVU[YVSZ`Z[LT^PKLÄ- U.S. trading interests.11 UHUJPHSÅV^Z The economic crisis has also produced wide- 6U [OL SLM[ [OL LJVUVTPZ[ -YLK 4VZLSL` OHZ spread interest in the Bank of North Dakota, a proposed that for banks deemed too big to fail “per- highly successful state-owned bank founded in manent nationalization with bonds-to-stocks swaps 1919 when the state was governed by legislators for bondholders is the most equitable solution...” belonging to the left-populist Nonpartisan League. Nationally owned banks, he argues, would provide a Between 1996 and 2008, the bank returned $340 basis for “a more stable and public-oriented banking TPSSPVU PU WYVÄ[Z [V [OL Z[H[L12 The Bank enjoys system in the future.”74VZ[Z[YPRPUNPZ[OLHYN\TLU[ broad support in the business community, as well of Willem Buiter, the Chief Economist of Citigroup as among progressive activists. Legislative propos- no less, that if the public underwrites the costs of als to establish banks patterned in whole or in part bailouts, “banks should be in public ownership…”8 on the North Dakota model have been put forward In fact, had the taxpayer funds used to bail out ma- I` HJ[P]PZ[Z HUK SLNPZSH[VYZ PU 6YLNVU 4HZZHJO\- QVYÄUHUJPHSPUZ[P[\[PVUZPUILLUWYV]PKLK ZL[[Z 0SSPUVPZ 4HY`SHUK >HZOPUN[VU 4PUULZV[H on condition that voting stock be issued in return for Florida, Vermont, Idaho, Hawaii, Louisiana, and Vir-

3 ALPEROVITZ AND DUBB: IF YOU DON’T LIKE CAPITALISM, AND YOU DON’T LIKE SOCIALISM, WHAT DO YOU WANT? ginia. Campaigns to create similar institutions have U.S. corporations facing global competitors, forc- ILLUSH\UJOLKPU4HPULHUK*HSPMVYUPH. 13 In Oregon, ing them to seek new solutions. The federal Center with strong support from a coalition of farmers, MVY4LKPJHYLHUK4LKPJHPK:LY]PJLZWYVQLJ[ZOLHS[O small business owners, and community bankers, care costs to rise from the 2010 level of 17.5 per- and backed by State Treasurer Ted Wheeler, a varia- JLU[VM.+7[V WLYJLU[PU 16 It has long tion on the theme —“a virtual state bank” (i.e., one been clear that the central question is to what ex- that has no storefronts but channels state-backed tent, and at what pace, cost pressures ultimately capital to support other banks) may be formed in force development of some form of single-payer the near future.14 How far the various strategies may system —the only serious way to deal with the un- develop is likely to depend on the intensity of future derlying problem. ÄUHUJPHSJYPZLZ[OLKLNYLLVMZVJPHSHUKLJVUVTPJ pain and political anger in general, and the capacity A new national solution is ultimately likely to of a new politics to focus citizen anger in support of come about either in response to a burst of pain- major institutional reconstruction and democratiza- driven public outrage, or more slowly through a state tion. I`Z[H[LI\PSK\W[VHUH[PVUHSZ`Z[LT4HZZHJO\- setts, of course, already That paradoxically has a near universal PARADOXICALLY, A LONG ERA OF a long era of social and plan, with 99.8 percent economic austerity and SOCIAL AND ECONOMIC of children covered and failing reform might open AUSTERITY AND FAILING 98.1 percent of adults.17 the way to more populist REFORM MIGHT OPEN THE WAY In Hawaii, health cover- or radical ‘evolutionary re- TO MORE POPULIST OR RADICAL age (provided mostly constructive’ institutional ‘EVOLUTIONARY RECONSTRUCTIVE’ I` UVUWYVÄ[ PUZ\YLYZ change—including various INSTITUTIONAL CHANGE reaches 91.8 percent of forms of public owner- adults in large part be- ship—is also suggested by emerging developments cause of a 1970s law mandating low cost insurance in health care. Here the next stage of change is al- for anyone working twenty hours a week.18 In Ver- YLHK` \UKLY^H`([ ÄYZ[ P[ PZ SPRLS` [V IL OHYTM\S TVU[.V]LYUVY7L[LY:O\TSPUZPNULKSLNPZSH[PVUPU characterized by Republican efforts to cut back the 4H`JYLH[PUN¸.YLLU4V\U[HPU*HYL¹HIYVHK TVZ[S` \UYLHSPaLK ILULÄ[Z VM [OL (MMVYKHISL *HYL effort that would ultimately allow state residents to (J[WHZZLKPU;OLÄYZ[Z[HNLZOV^L]LYHYL move into a publicly funded insurance pool—in es- UV[SPRLS`[VIL[OLSHZ[7VSSZZOV^V]LY^OLSTPUN sence a form of single-payer insurance. Universal distrust of and deep hostility toward insurance com- coverage, dependent on a federal waiver, would panies. We can also expect growing public anger to begin in 2017 and possibly as early as 2014.19 In be fueled by media accounts of stories like that of Connecticut, legislation approved in June 2011 Gambino Olvera, an uninsured paraplegic, who was created a “SustiNet” Health Care Cabinet directed dumped on skid row in nothing more than a soiled [VWYVK\JLHI\ZPULZZWSHUMVYHUVUWYVÄ[W\ISPJ OVZWP[HSNV^UI`/VSS`^VVK7YLZI`[LYPHU/VZWP[HS health insurance program by 2012 with the goal of in 2007.15 offering such a plan beginning in 2014.20 In all, nearly 20 states will soon consider bills to create one or Cost pressures are also building up—and, another form of universal health care. critically, in ways that will continue to undermine

4 ALPEROVITZ AND DUBB: IF YOU DON’T LIKE CAPITALISM, AND YOU DON’T LIKE SOCIALISM, WHAT DO YOU WANT? One can also observe a developing institution- a greenhouse capable of producing over three mil- changing dynamic in the central neighborhoods of lion heads of lettuce a year. The Cleveland effort, some of the nation’s larger cities, places that have ^OPJOPZWHY[S`TVKLSLKVU[OL WLYZVU4VU- consistently suffered high levels of unemployment dragón cooperative network, based in the Basque and underemployment, with poverty most com- region of Spain, is on track to create new business- monly above 25 percent. In such neighborhoods es, year by year, as time goes on. However, its goal democratizing development has also gone forward, is not simply worker ownership, but the democrati- again paradoxically, precisely because traditional zation of wealth and community building in general policies — in this case involving large expenditures in the low-income Greater University Circle area of for jobs, housing and other necessities — have what was once a thriving industrial city. Linked by been politically impossible. “Social enterprises” H JVTT\UP[`ZLY]PUN UVUWYVÄ[ JVYWVYH[PVU HUK H that undertake businesses revolving fund, the compa- in order to support spe- 130 MILLION AMERICANS ARE nies cannot be sold outside JPÄJ ZVJPHS TPZZPVUZ UV^ MEMBERS OF VARIOUS URBAN, the network; they also return increasingly comprise AGRICULTURAL, AND CREDIT [LUWLYJLU[VMWYVÄ[Z[VOLSW what is sometimes called develop additional worker- UNION COOPERATIVES “a fourth sector” (differ- V^ULKÄYTZPU[OLHYLH ent from the government, I\ZPULZZ HUK UVUWYVÄ[ ZLJ[VYZ 9V\NOS`  A critical element of the strategy, moreover, UV[MVYWYVÄ[JVTT\UP[`KL]LSVWTLU[JVYWVYH[PVUZ points to what is essentially a quasi-public sector are largely devoted to housing development. There planning model: Hospitals and universities in the area are now also more than 10,000 businesses owned currently spend $3 billion on goods and services a in whole or part by their employees; nearly three mil- year—none, until recently, from the immediately sur- lion more individuals are involved in these enterpris- rounding neighborhood. The “Cleveland model” is es than are members of private sector unions. An- supported in part by decisions of these substantial- other 130 million Americans are members of various S` W\ISPJHSS` ÄUHUJLK PUZ[P[\[PVUZ [V HSSVJH[L WHY[ VM urban, agricultural, and credit union cooperatives. their procurement to the worker-co-ops in support In many cities, important new “land trust” develop- of a larger community-building agenda. The taxpayer ments are underway using an institutional form of funds that support programs of this kind do double UVUWYVÄ[VYT\UPJPWHSV^ULYZOPW[OH[KL]LSVWZHUK duty by helping, too, to support the broader com- maintains low- and moderate-income housing.21 munity through the new institutional arrangements. The same, of course, is true for a range of munici- (S[OV\NO[OLÄUHUJPHSS`Z[YLZZLKWVW\SHYWYLZZ pal, state, and other federal policies available to local covers very little of this, the various institutional ef- I\ZPULZZLZPUJS\KPUNLTWSV`LLV^ULKÄYTZ forts have also begun to develop innovative strate- gies that suggest broader possibilities for change. Numerous other cities are now exploring efforts In Cleveland, Ohio, an integrated group of worker- VM [OPZ RPUK PUJS\KPUN ([SHU[H 7P[[ZI\YNO (THYPSSV owned companies has developed, supported in Texas, and the metropolitan Washington, D.C. area.) part by the purchasing power of large hospitals and Related institutional work is now underway, too, universities. 22 The cooperatives include a solar in- through the leadership of the United Steelworks, a stallation and weatherization company, an industrial union that has put forward new proposals for a co- scale (and ecologically advanced) laundry, and soon op-union model of ownership.23

5 ALPEROVITZ AND DUBB: IF YOU DON’T LIKE CAPITALISM, AND YOU DON’T LIKE SOCIALISM, WHAT DO YOU WANT? (UV[OLYPUUV]H[P]LLU[LYWYPZLPZ4HYRL[*YLLR NLULYH[PUN IPSSPVUPUHUU\HSYL]LU\L:PNUPÄJHU[ 7SHaHPU:HU+PLNV(WYVQLJ[VM[OLJacobs Center public institutions are also common at the state for Neighborhood Innovation 4HYRL[ *YLLR 7SHaH SL]LS*HS7,9:*HSPMVYUPH»ZW\ISPJWLUZPVUH\[OVYP[` is a mixed use commercial-retail-residential devel- OLSWZÄUHUJLSVJHSJVTT\UP[`KL]LSVWTLU[ULLKZ" opment, anchored by a Food 4 Less supermarket. in Alaska, state oil revenues provide each citizen The project was conceived, planned, and devel- with dividends from public investment strategies as oped by teams of community members working a matter of right; in Alabama, public pension invest- with the Jacobs Center. Together they assembled ing has long focused on state economic develop- a diverse package of public and private funding for TLU[PUJS\KPUNLTWSV`LLV^ULKÄYTZ1 [OL TPSSPVU7OHZL0WYVQLJ[\S[PTH[LS`[OL[V[HS value of the project, which involves master planning Although such local and state ownership is and redevelopment of a total of 52 acres of land, is surprisingly widespread, it can also be vulnerable estimated to reach $700 million in public and private [V JOHSSLUNL ;OL ÄZJHS JYPZPZ ¶ HUK JVUZLY]H[P]L investment).24 resistance to raising taxes – has led some mayors and governors to sell off public assets. In Indiana, 4HYRL[*YLLR7SHaHPZHSZVHNYLLUWYVQLJ[HUK .V]LYUVY4P[JO+HUPLSZZVSK[OL0UKPHUH;VSS9VHK aims to expand to become a transit-oriented village to Spanish and Australian investors.27 In Chicago, with 800 units of affordable housing and extensive YLJLU[S` YL[PYLK 4H`VY 9PJOHYK +HSL` WYP]H[PaLK MHJPSP[PLZMVYUVUWYVÄ[VYNHUPaH[PVUZ;OLWYVQLJ[OHZ parking meters and toll collection on the Chicago restored 1,400 linear feet of wetlands, while gener- Skyway, and even proposed selling off recycling H[PUNWLYTHULU[QVIZWLYJLU[ÄSSLKI`SVJHS collection, equipment maintenance, and the annual residents), provided 415 residents with a 40-per- “Taste of Chicago” festival.28 cent ownership stake in the project, and gener- SIGNIFICANT PUBLIC INSTITU- /V^ MHY JVU[PU\PUN ÄUHUJPHS ated $42 million in eco- TIONS ARE ALSO COMMON AT and political pressure may nomic activity (in 2008).25 THE STATE LEVEL SLHKV[OLYVMÄJPHSZ[VH[[LTW[ to secure revenues by sell- Yet another arena of institutional growth in- ing off public assets is an open question. On the volves municipal development. By maintaining other hand, public resistance to such strategies, direct ownership of areas surrounding transit sta- although less widely publicized, has been surpris- tion exits, public agencies in Washington, D.C., ingly strong in many areas. Toll road sales have Atlanta and other cities earn millions capturing the ILLUOLSK\WPU7LUUZ`S]HUPH29 and New Jersey30, increased land values their transit investments cre- HUKUL^S`LSLJ[LK*OPJHNV4H`VY9HOT,THU\LS H[L ;OL [V^U VM 9P]LY]PL^ 4PJOPNHU OHZ ILLU H YLJLU[S` YLQLJ[LK HU H[[LTW[ [V WYP]H[PaL 4PK^H` national leader in trapping methane from its land- Airport as previously attempted by Daley.31 An ef- ÄSSZHUK\ZPUNP[[VM\LSLSLJ[YPJP[`NLULYH[PVU[OLYLI` fort to transfer city-owned parking garages to pri- providing both revenues and jobs. There are roughly vate ownership in Los Angeles also failed when 500 similar projects nationwide.264HU`JP[PLZOH]L established municipally owned hotels. There are 1 For further information on various community building also nearly 2,000 publicly owned utilities that pro- efforts, see www.community-wealth.org. See also Democracy Collaborative of the University of Maryland, vide power (and, increasingly, broadband services) Building Wealth: The New Asset-Based Approach to to more than 45 million Americans, in the process Solving Social and Economic Problems, Washington, DC: The Aspen Institute, 2005. 6 ALPEROVITZ AND DUBB: IF YOU DON’T LIKE CAPITALISM, AND YOU DON’T LIKE SOCIALISM, WHAT DO YOU WANT? residents and business leaders realized parking ther decay—and “real” unemployment rates in the rates would spike if the deal went through.32) 15-16 percent range—appear more likely than a re- turn to booming economic times. At the heart of the paradoxical strategies of development in these varied and increasingly Our contention is that, in fact, a different kind widespread illustrations is one or another form of of progressive change is emerging—one that in- democratized owner- volves an extended, ship—a form at the na- HOW FAR MIGHT EVOLUTIONARY ZSV^HUKKPMÄJ\S[[YHUZ- tional, state, municipal RECONSTRUCTIVE DEVELOPMENTS formation of institutional and neighborhood level structures and power. GO IF TRADITIONAL POLICIES, BOTH that stands in contrast Such efforts, over time, LIBERAL AND CONSERVATIVE, FAIL to traditional ideas that are also likely to offer TO DEAL WITH GROWING SOCIAL only corporations or possibilities for the bol- private businesses can AND ECONOMIC PAIN? stering of progressive own and manage pro- political relationships. ductive wealth. Liberal activists and policy-makers since the time of the New Deal and the Great Depression have Nor should it be forgotten that at the height implicitly assumed they were providing one or an- VM [OL YLJLU[ ÄUHUJPHS HUK LJVUVTPJ JYPZPZ [^V VM other form of “countervailing power” against large the nation’s largest manufacturing corporations— corporations. With the decay of this approach, .LULYHS 4V[VYZ HUK *OY`ZSLY·^LYL UH[PVUHSPaLK evolutionary reconstructive efforts aim either to because the alternative was all but certain to be weaken or displace corporate power. Strategies the collapse of the heart of the U.S. manufacturing like anti-trust or efforts to “break up” big banks economy in general. aim to weaken corporations by reducing their size. 7\ISPJIHURPUNT\UPJPWHS\[PSP[PLZHUKZPUNSLWH`LY *** health plans attempt slowly to displace privately owned companies. At the same time, community- How far might evolutionary reconstructive de- IHZLKLU[LYWYPZLZVMMLYSVJHSW\ISPJVMÄJPHSZHS[LY- velopments of these various kinds go if ongoing dif- natives to paying large tax-incentive bribes to big ÄJ\S[PLZJVU[PU\L[VJYLH[LL]LYKLLWLUPUNWHPUHUK corporations. traditional policies, both liberal and conservative, fail to deal with growing social and economic pain? To be sure, a several decade long develop- mental trajectory of “evolutionary reconstruction” One thing is certain: traditional liberalism, de- may fail to alter fundamental institutional relation- pendent on expensive federal policies and strong ships and political power balances, or result in only labor unions, is in a moribund state in the United modest changes, as have most kinds of top-down States. The government no longer has much ca- national reforms. The era of stalemate and decay pacity to use progressive taxation to achieve equity might simply continue and worsen. Like ancient goals or to regulate corporations effectively. Con- Rome, the United States could simply decline, fall- gressional deadlocks on such matters are the rule, ing into the status of a nation fundamentally unable not the exception. At the same time, ongoing eco- to address its social ills... nomic stagnation or mild upturns followed by fur-

7 ALPEROVITZ AND DUBB: IF YOU DON’T LIKE CAPITALISM, AND YOU DON’T LIKE SOCIALISM, WHAT DO YOU WANT? The alternative possibility—that a painful and that involves more than 150,000 business profes- sustained era of stalemate and decay may allow sionals and thirty separate business organizations for the development and ultimate politicization of committed to sustainability. Leading White House a coherent new long-term progressive strategic di- ÄN\YLZ HUK Z\JO *HIPUL[ SL]LS VMÄJPHSZ HZ 3HIVY rection—is not to be dismissed out of hand, how- Secretary Hilda Solis have welcomed the organi- ever. Such a direction would build upon the remain- zation as a counter to the U.S. Chamber of Com- ing energies of traditional liberal reform, animated merce. Jeffrey Hollender, Chair of ASBC’s Business over time by new populist anger and movements Leadership Council and former CEO of Seventh aimed at confronting corporate power, the extreme .LULYH[PVUOHZKLUV\UJLK[OL*OHTILYMVY¸ÄNO[- concentration of income, failing public services, the ing democracy and destroying America’s economic ecological crisis, and military adventurism. And it future” because of its opposition to climate change would explicitly advocate the slow construction of legislation and its support for the Citizens United new institutions run by people committed to devel- decision.33 oping an expansively democratic polity—an effort that could give political At the heart of the spec- voice to the new con- trum of emerging institu- stituencies emerging AT THE HEART OF THE SPECTRUM OF tional change is the tra- alongside the new de- EMERGING INSTITUTIONAL CHANGE ditional radical principle velopments, adding a IS THE TRADITIONAL RADICAL PRIN- that the ownership of new, potentially pow- CIPLE THAT THE OWNERSHIP OF capital should be subject erful and growing ele- CAPITAL SHOULD BE SUBJECT TO to democratic control. In ment in support of lon- DEMOCRATIC CONTROL a nation where one per- ger term progressive cent of the population change.2 owns nearly as much investment wealth as the bot- tom 99 percent (49.7 percent of total), this principle New organizations like the Business Alliance is likely to be particularly appealing to the young — for Local Living Economies (BALLE) and the Ameri- the people who will shape the next political era.34 can Sustainable Business Council (ASBC) have also 0U   L]LU HZ 9LW\ISPJHUZ HZZHPSLK 7YLZPKLU[ been quietly developing momentum in recent years. Obama and his liberal allies as immoral “socialists,” BALLE, which has more than 22,000 small business a Rasmussen poll reported that Americans under members, works to promote sustainable local com- thirty were “essentially evenly divided” as to whether munity development. ASBC (which includes BALLE [OL`WYLMLYYLK¸JHWP[HSPZT¹VY¸ZVJPHSPZT¹;OLÄUK- as a member) is an advocacy and lobbying effort PUN OHZ ILLU JVUÄYTLK PU HKKP[PVUHS WVSSZ ( +L- JLTILY7L^Z\Y]L`MVYL_HTWSLMV\UK[OVZL 2 Paradoxically, evolutionary reconstructive processes of institution-shifting change over an extended period aged 18 to 29 have a favorable reaction to the term of time may be more viable in the United States than in “socialism” than “capitalism” by a margin of 49 to many European nations—in part because of the nation’s WLYJLU[(7L^9LZLHYJO*LU[LYWVSSHSZV traditions of decentralization, in part precisely because American liberalism’s reform capacity has historically been found a majority of Americans now have an unfavor- weaker than most social democratic political formations able view of corporations—down from nearly three in Europe. Moreover, the decline of American labor unions quarters holding favorable views only twelve years from 34.7 percent of the labor force in the 1950s to 11.8 35 percent now and only 6.9 percent in the private sector before. continues to further weaken traditional progressive reform capacities. 8 ALPEROVITZ AND DUBB: IF YOU DON’T LIKE CAPITALISM, AND YOU DON’T LIKE SOCIALISM, WHAT DO YOU WANT? Even if many of the youth who prefer socialism munities, anchored through wealth-democratizing to capitalism may well be unsure what “socialism” strategies as a matter of principle. is, they are clearly open to something new, what- ever it may be called. A non-statist, community- Four critical axioms underlie the democratic building, institution-changing, democratizing strate- theory of a model that builds on the evolving forms gy could well capture their imagination and channel and on structural principles appropriate also to the their desire to heal the world. It is surely a positive larger emerging challenges: [1] democratization of direction to pursue, no matter what. And plausibly wealth; [2] community, both locally and in general, it could open the way to an era of true progressive as a guiding theme; [3] decentralization in general; renewal, even one day perhaps step-by-step sys- [4] and substantial but not complete forms of dem- temic change or the kind of unexpected explosive ocratic planning in support of community, and to movement-building power evidenced in the “Arab achieve longer term economic, democracy-building Spring” and, historically, in our own Civil Rights, and ecological goals. feminist and other great movements. DEMOCRATIZATION OF WEALTH. THEMES OF EMERGING SYSTEMIC DESIGN A beginning point is the simple observation that A long painful era of social and economic de- traditional “after-the-fact” redistributive measures cay, on the one hand, and of the slow buildup, com- depend upon power relationships that no longer munity by community, state by state of democratiz- hold. As noted, particularly important has been the ing strategies, on the other, may be understood also decline of the labor union institutional base of tra- as the preliminary historical developmental work ditional progressive politics. Hence, either another needed to clarify new principles for larger scale ap- way forward is possible, or the power that attends plication. As in the decades prior to the New Deal high levels of income and wealth is likely to con- state and local experimentation in the “laboratories tinue to produce growing inequality of income and of democracy” may suggest new democratizing ap- wealth, on the one hand, and political power, on the WYVHJOLZ MVY SHYNLY ZJHSL Z`Z[LTKLÄUPUN PUZ[P[\- other—and thereby also to subvert genuine demo- tions when the appropriate political moment occurs. cratic processes.

It is possible to begin to clarify the parameters ;OL ]HYPV\Z PUZ[P[\[PVUZ IYPLÅ` OPNOSPNO[LK of a systemic model (1) to which the various emerg- above—from co-ops to land trusts, and including ing trajectories of institution-building and democ- municipal enterprise and state investing, as well as ratization point —and (2) which are suggested by UH[PVUHSÄUHUJPHSOLHS[OHUKTHU\MHJ[\YPUNMVYTZ the logic of longer term challenges being created by all challenge dominant ideologies which hold that issues of political stalemate, of scale, and of eco- private corporate enterprise offers the only pos- logical, resource and climate change. Different in sible way forward. They also help open new ways its basic structure both from corporate capitalism of conceptualizing practical approaches to mean- and state socialism, the model might be called “A ingful larger scale democratization. The steady il- 7S\YHSPZ[ *VTTVU^LHS[O¹ [V \UKLYZJVYL P[Z WS\YHS lumination of this principle has important political forms of democratized ownership) or “A Community implications both locally and nationally, introducing Sustaining System” to underscore its emphasis on new conceptions into American political dialogue in economically and democratically healthy local com- ways appropriate to American culture.

9 ALPEROVITZ AND DUBB: IF YOU DON’T LIKE CAPITALISM, AND YOU DON’T LIKE SOCIALISM, WHAT DO YOU WANT? New wealth-building forms may also contrib- Furthermore, it is only because of the larger ute directly to building progressive political power JVTT\UP[`ILULÄ[PUNSLNP[PTH[PUNWYPUJPWSL[OH[ZL- either, as noted, through the “displacement” prin- rious political and moral claims on broader public JPWSLVYI`VMMLYPUNSVJHSVMÄJPHSZHS[LYUH[P]LZ[YH[L- support can be put forward with integrity, and with gies (or both). Historically, cooperative and other force. It is because the linked co-ops have a larger federations also helped establish institutional and community-building purpose that major hospitals, organizational support for explicit political efforts in universities and other community-serving institu- Z\WWVY[VMZWLJPÄJWVSPJPLZ*YP[PJHSS`^VYRLYV^ULK tions are also involved—and why public or public- ÄYTZJVVWZSHUK[Y\Z[ZT\UPJPWHSLU[LYWYPZLZHUK supported funds are appropriately shifted to their the like help stabilize local community economies: support when possible. Individual co-ops, worker- Unlike major corporations, which commonly come V^ULK ÄYTZ ZTHSS I\ZPULZZ HUK [OL SPRL [OV\NO and go (often after extracting large subsidies) such important, inevitably represent distinct interests dif- institutions tend to be anchored locally by virtue of MLYLU[MYVT[OH[VM[OLJVTT\UP[`HZH^OVSL4VYL- their democratic ownership structure. over the people who comprise the workforce at any one time do not comprise the entire community. COMMUNITY The “community as a whole” includes older people, Z[H`H[OVTLZWV\ZLZJOPSKYLUHUK[OLPUÄYT A systemic model that hopes to alter larger patterns of distribution and power must also nur- 7\[HUV[OLY^H`HZVWWVZLK[VZVTL[OLV- ture a culture that is supportive of broad and inclu- ries that simply emphasize worker-ownership of sive goals, and in particular, must contribute to the ZWLJPÄJLU[LYWYPZL[OLTVKLSPZIHZLKVUHIYVHKLY reconstruction of principles of “community.” In eco- theoretical and cultural concept—namely, that the nomic terms, building community means introduc- interests of the workers—and particularly workers in ing and emphasizing practical forms of community any particular sector—are not inherently and institu- ownership in systemic design, vision, and theory. tionally the same as those of the overall community In the Cleveland effort discussed above, the cen- understood in terms of its necessarily broader and tral institution is a community-wide, neighborhood- more encompassing concerns. This is not to sug- LUJVTWHZZPUN UVUWYVÄ[ JVYWVYH[PVU ;OL IVHYK gest that freestanding, worker-owned cooperatives VM[OLUVUWYVÄ[PUZ[P[\[PVUPUJS\KLZYLWYLZLU[H[P]LZ are unimportant or to be left out of a comprehensive both of the worker cooperatives and of key com- model. It is simply to suggest that any genuine ef- munity institutions. Worker co-ops are linked to this fort to emphasize equality must come to terms with (and to a revolving fund at the center), and though the fact that large order systemic models based en- independently owned and managed, they cannot tirely—rather than partly—on worker ownership, as be sold without permission from the founding com- urged by some theorists, are likely to develop power munity-wide institution. The basic principle is that relationships of a particular kind. The workers who [OL LMMVY[ ZOV\SK ILULÄ[ [OL IYVHKLY JVTT\UP[` might control the garbage collection enterprises, not only or simply workers in one or another co-op. for instance, are obviously inherently on a different Related to this is the fact that initial support is pro- footing from the workers who might control the oil vided by the core institution. Future efforts in other industry in a model structured along pure worker settings will undoubtedly test further approaches to ownership lines. Furthermore, worker-owned busi- democratizing core community-wide institutions. nesses operating in a challenging environ- ment can easily be overwhelmed by competitive

10 ALPEROVITZ AND DUBB: IF YOU DON’T LIKE CAPITALISM, AND YOU DON’T LIKE SOCIALISM, WHAT DO YOU WANT? forces that undermine larger social and ecological Decentralization in these circumstances is goals. Though to a degree regulations and after-the- nearly inevitable, and if the continental nation is fact efforts aimed at controlling the inherent dynam- too large and most states too small to deal with PJZVMZ\JOTVKLSZJHUTVKPM`HUKYLÄULV\[JVTLZ economic matters, what remains is the intermedi- they are unlikely to be able to alter the underlying ate scale we call the region—a unit of organization JVUÅPJ[ZVMPUZ[P[\[PVUHSPU[LYLZ[HUKWV^LYPU]VS]LK much discussed in serious theoretical work by con- servatives and liberals and radicals at various points DECENTRALIZATION in modern history—and a unit of scale, we suggest, that is likely to become of increasing importance as To emphasize the importance of local com- time (and population growth) go on. The question is munities—and within that, of institutions of democ- almost certainly how to regionalize, not whether to ratized ownership both of encompassing and of do so—what powers to maintain at the center and independent and diverse forms—is implicitly to em- what powers to relegate to various smaller scale phasize, a third systemic design principle — namely, units. The principle of subsidiarity—keeping deci- decentralization in general. This raises an additional sion-making at the lowest feasible level, and only challenging question: Can there be meaningful de- elevating to higher levels when absolutely neces- mocracy in a very large system without far more rig- sary—is implicit as a guiding principle of the emerg- orous decentralization than is commonly assumed PUN TVKLS 4HRPUN P[ L_WSPJP[ ^L HSZV Z\NNLZ[ PZ in the United States? likely to become both inevitable and strategically critical.39 It is a commonplace that Washington is now ‘broken,’ that decision-making at the center is stale- Clearly we are discussing long-term change, TH[LKPUKLJH`7HY[VM[OPZPZJSLHYS`JVUZ[P[\[PVUHS not abrupt shifts in direction. Inherent in any long (e.g., the ‘checks and balance’ system, voting pro- developmental effort of the kind suggested by “evo- cedures in the Senate, the over-representation of lutionary reconstructive” processes is a profound small states, etc.) But part of the problem has to need to clarify large order matters of principle. At do with scale—and in two quite distinct ways. First, each stage very serious questions need to be asked we rarely confront the fact that the United States is VM ZWLJPÄJ WYVQLJ[Z·^OL[OLY NLU\PUL KLTVJYHJ` H]LY`]LY`SHYNLNLVNYHWOPJWVSP[`·VULKPMÄJ\S[[V can be maintained without altering current patterns manage in general, or to manage through meaning- of wealth ownership, without nurturing a culture of ful democratic participation in particular: Germany community, and without dealing with the problem of JV\SK LHZPS` IL [\JRLK PU[V 4VU[HUH" -YHUJL PU[V scale, particularly as population and the economy (YPaVUHHUK5L^4L_PJV36 In the words of George grow in our continent spanning system. F. Kennan, compared with most nations it is a “mon- ster” country.37 PLANNING

Furthermore, it is very large in population— A fourth principle involves the importance of currently more than 310 million, likely to reach 500 democratic planning—and of two kinds (and includ- million shortly after mid-century and in the “high es- ing variations and contributions from the market). timate” of the U.S. Census Bureau possibly to reach In the Cleveland effort the principle of community- or approach over a billion by 2100.38 ^PKLLJVUVTPJILULÄ[HUKZ[HIPSP[`PZWHY[S`HMÄYTLK by the inclusive structure of the model. It is also af-

11 ALPEROVITZ AND DUBB: IF YOU DON’T LIKE CAPITALISM, AND YOU DON’T LIKE SOCIALISM, WHAT DO YOU WANT? ÄYTLKOV^L]LYI`[OLJHYLM\SS`Z[Y\J[\YLKYLSH[PVU- severe stress by these processes, local community ship to institutions that can help stabilize the local KLJPZPVUTHRPUNHZWVSP[PJHSZJPLU[PZ[7H\S7PLYZVU “market”—in this case, the so-called “anchor insti- PUWHY[PJ\SHYOHZZOV^UPZZVÄUHUJPHSS`JVUZ[YHPULK [\[PVUZ¹ UVUWYVÄ[ OVZWP[HSZ HUK \UP]LYZP[PLZ [OH[ as to make a mockery of democratic process.40 rarely leave the community. As noted, the arrange- TLU[ZRL[JOLKHIV]L·PU^OPJOZ\JOZPNUPÄJHU[S` Even more important to the larger systemic publically supported) institutions agree to purchase model is the judgment that an authentic experience some part of their needs from new businesses that of local democratic practice is also absolutely es- are owned by the employees and are part of the sential for there to be genuine national democratic larger integrated community-wide effort—is, in fact, practice (as theorists from Alexis de Tocqueville and a planning system: 1VOU :[L^HY[ 4PSS [V )LUQHTPU )HYILY1HUL 4HU- sbridge, and Stephen Elkin have argued.)41 To the 0[PZVUL[OH[HS[LYZYLSH[PVUZOPWZIL[^LLUÄYTZ degree this central judgment is accepted, some and the community, on the one hand, and the mar- form of explicit public planning to achieve the local ket on the other, and approximates a design in economic stability required to allow for genuine local which community is a central goal (but with worker- democratic processes becomes absolutely essen- ownership as a subsidiary feature)—and in which tial as well. substantial support is provided through a partially planned market. Note carefully: partially planned, In this context, too, experiments in partici- not totally planned. There are no subsidies involved, patory budgeting, stemming from innovations in and outside competitors may 7VY[V (SLNYL PU )YHaPS VMMLY H JOHSSLUNLSVJHSÄYTZ0UWYPUJPWSL good deal of promise. The ba- however, since there are much SUBSTANTIAL LOCAL sic idea is that citizens meet in IYVHKLYJVTT\UP[`ILULÄ[ZPU- ECONOMIC STABILITY IS popular assemblies through- cluding rebuilding the local tax CLEARLY NECESSARY IF out the city to deliberate about base, and a better local eco- COMMUNITY IS A how the city budget should nomic environment for indepen- PRIORITY IL ZWLU[ 4VZ[ VM [OLZL HZ- dent small businesses, co-ops, semblies are organized around HUK ^VYRLYV^ULK ÄYTZ [OL WYPUJPWSL VM Z\WWVY[ geographical regions of the city; a few are orga- for the larger community-building effort is seen as nized around themes with a citywide scope–like both socially and economically important. public transportation or culture. Attempts have been made to adopt elements of participatory Two further related points of principle: One is budgeting in the United States, notably in Chica- that substantial local economic stability is clearly go. These efforts have definite limits since they necessary if community is a priority and—critical- are restricted to municipal budget decisions. ly—if democratic decision-making is also a priority Nonetheless, to the extent that the practice of (and to be meaningful in local communities): First, participatory budgeting can be extended over because without stability, the local population is un- time to municipal, state, regional and national stable, tossed hither and yon by uncontrolled eco- and other questions, it could nomic forces that undermine any serious interest provide an important mechanism for increasing in the long term health of the community. Second, meaningful democracy. because to the extent local budgets are put under

12 ALPEROVITZ AND DUBB: IF YOU DON’T LIKE CAPITALISM, AND YOU DON’T LIKE SOCIALISM, WHAT DO YOU WANT? Elsewhere we have suggested ways to think munity, leaving behind empty houses, half empty about larger scale system-wide planning approach- schools, roads, hospitals, public buildings and the es little different in principle than that exhibited on like—only to have to build them again in the new smaller scale in Cleveland by considering the na- location to which the jobs have been moved. The tion’s longer term mass transit and high-speed rail process is wasteful of capital and human resources needs.42 The United States has very little capacity in the extreme, but also extremely wasteful in terms to build equipment for any of this. (Though there of the carbon content both of the structures dis- PZ VUL ZTHSS ÄYT PU 7VY[SHUK 6YLNVU PU [OL THPU carded—and then of replacements built anew in a we assemble parts, most of which are produced different location. by foreign companies.) When the next crisis gen- erates future problems (perhaps again in the auto It follows, quite simply, that any serious ap- industry) a future systemic model might well use proach to achieving ecological sustainability in the public contracts needed to build mass transit and nation’s communities—one that can allow for the high speed rail in ways that also help support quasi- reduction of the carbon footprint of cities—requires W\ISPJUH[PVUHS HUKJVTT\UP[`IHZLKÄYTZ·IV[O HZ`Z[LTVMWSHUUPUNZ\MÄJPLU[S`YVI\Z[[VZ\IZ[HU- to produce what is needed and simultaneously to tially stabilize communities. help stabilize local communities. DEMOCRATIZATION OF WEALTH (AGAIN) It is again important to note that taxpayer mon- AT LARGER SCALE L` HUK JVTT\[LY MHYLZ ^PSS PUL]P[HIS` ÄUHUJL [OL effort. The approach—which might appropriately A systemic model aimed at dealing with eco- PU]VS]L QVPU[ W\ISPJ^VYRLY V^ULK ÄYTZ·JV\SK nomic issues, ecological challenges and local com- clearly be applied in connection with other indus- munity stability must inevitably also come to terms tries as well; and, again, some carefully structured with corporate power and corporate dynamics— forms of competition might be encouraged to keep especially in the era of global warming and resource the model on its toes. SPTP[Z 7\ISPJS` SPZ[LK SHYNLZJHSL JVYWVYH[PVUZ HYL Z\IQLJ[[V>HSS:[YLL[»ZÄYZ[JVTTHUKTLU[!.YV^ A related point of principle has to do with com- or die! “[S]tockholders in the speculation economy munity stability and global warming. It is not widely ^HU[[OLPYWYVÄ[ZUV^¹VIZLY]LZ3H\YLUJL4P[JO- realized that community stability is required to help ell, author of The Speculation Economy, “and they deal with climate change issues as well—and again do not much care how they get them.”43 Indeed, if for two quite distinct reasons. One is simply that it a corporate executive does not show steadily in- is impossible to do serious local “sustainability plan- creasing quarterly earnings, the grim quarterly re- ning” that reduces a community’s carbon footprint turns reaper that haunts the stock market will cut if such planning is disrupted and destabilized by him down sooner or later. economic turmoil. Stability is especially important in achieving high-density housing and in transporta- Growing carbon emissions come with the ter- tion planning. Stability is also important because it is ritory of ever-expanding growth—both as an eco- very carbon costly, as well as capital costly, to con- nomic matter and above all as a political matter, tinue our current policy of literally “throwing away where opposition to anything that adds costs is part cities.” Unplanned corporate decision-making com- and parcel of the basic corporate dynamic. And cli- monly results in the elimination of jobs in one com- mate change in general and global warming in par-

13 ALPEROVITZ AND DUBB: IF YOU DON’T LIKE CAPITALISM, AND YOU DON’T LIKE SOCIALISM, WHAT DO YOU WANT? ticular are the central challenges of the 21st century, to encourage work sharing, changing government challenges that go well beyond any we have previ- hiring practices to model shorter working hours, ously faced. and changing labor policies to discourage excessive overtime. In addition to improving work-life balance 4VYLV]LY [V [OL KLNYLL [OH[ I\ZPULZZLZ PU- for families, such a shift can also facilitate lower im- cluding worker-owned businesses) are subjected pact forms of consumption: taking the bike instead to intense market competition, to that very extent of the car or cooking at home instead of buying fast most must also attempt to steadily expand sales, food are two obvious examples. WYVÄ[ZHUKNYV^[O0M[OL`KVUV[[OL`HYLSPRLS`[V be severely punished by the markets, or, alterna- While a focus on restoring balance on a per- [P]LS`JVTWL[P[VYZ^PSSÄUK^H`Z[VHJOPL]LNHPUZHZ sonal level is important, it is also necessary to con- they expand, often to the detriment of a less ag- front the systemic dynamics that promote a contin- NYLZZP]LÄYT \LKMVJ\ZVUNYV^[O(ZMVYTLY7YLZPKLU[PHSHK]PZLY James Gustav Speth has bluntly observed: “For the The destructive “grow or die” imperative inher- most part we have worked within this current system ent in the current market-driven system cannot be of political economy, but working within the system wished or regulated away. In addition to the over- will not succeed in the end when what is needed is riding issue of global warming, countless studies transformative change in the system itself.” 47 have documented growing energy, mineral, water, arable land and other limits to unending growth— As a matter of cold logic, if some of the most limits corporations are desperately trying to avoid important corporations have a massively disruptive [OYV\NOVULVYHUV[OLY[LJOUVSVNPJHSÄ_[OH[PZVM[LU and costly impact on the economy in general and equally or more environmentally destructive (frack- the environment in particular—and if experience ing, tar sands extraction, deep water drilling, etc.) suggests that regulation and anti-trust laws in impor- Yet the trends continue: The United States, with less tant areas are likely to be largely subverted by these than 5% of global population, consumes 22% of the corporations—a public takeover becomes the only world’s oil, 13% of world coal, and 21% of world logical answer. This general argument was, in fact, natural gas.44 In the brief period 1940-1976, Ameri- put forward most forcefully not by liberals, but by cans used up as large a share of the earth’s mineral the founders of the Chicago School of economics. resources as did everyone in all Conservative Nobel Laureate previous history.45 THE DESTRUCTIVE “GROW George Stigler repeatedly ob- OR DIE” IMPERATIVE served that regulatory strat- At some point, a society INHERENT IN THE CURRENT egies were “designed and like that of the United States that MARKET-DRIVEN SYSTEM operated primarily for [the 48 already produces the equiva- CANNOT BE WISHED OR JVYWVYH[PVU»ZDILULÄ[¹ Hen- lent of over $190,000 for every REGULATED AWAY Y` * :PTVUZ 4PS[VU -YPLK- family of four must ask when man’s teacher and one of the enough is enough. As Juliet Schor has argued, one most important Chicago School thinkers, was even important step it to shift the economy to encourage more forceful. “Turned loose with inordinate pow- less consumption and more leisure time.46 A num- ers, corporations have vastly over-organized most ber of policy measures could help facilitate this shift, industries,” Simons held. The state “should face the such as reforming unemployment insurance policy necessity of actually taking over, owning, and man-

14 ALPEROVITZ AND DUBB: IF YOU DON’T LIKE CAPITALISM, AND YOU DON’T LIKE SOCIALISM, WHAT DO YOU WANT? aging directly…industries in which it is impossible to termed the dominant hegemonic ideology. The in- maintain effectively competitive conditions.”49 troduction of such themes in local experience may also be understood as the necessary precondition Recent research on public and quasi-public of larger scale applications of the same principles at forms of enterprise, contrary to conventional wis- the appropriate moment. dom, also suggests new possibilities in this area: For example, between 2004 and 2008, 117 state- At a very different level is the question of ideas owned companies from Brazil, Russia, India, and in general—and when they may have meaningful *OPUH HWWLHYLK MVY [OL ÄYZ[ [PTL VU [OL -VYILZ impact. Rarely do important ideas matter in poli- 2000 global list of the world’s largest companies. tics. What usually matters is the momentum of en- 0U   [OYLL VM [OL [VW Ä]L NSVIHS JVTWHUPLZ trenched power. But not always… Sometimes— I`THYRL[]HS\L^LYL*OPULZLZ[H[LV^ULKÄYTZ! when the old ideas no longer explain the world, ICBC (Industrial and Commercial Bank of China), when it is obvious that something is wrong—then *OPUH4VIPSLHUK7L[YV*OPUH 50 Nor, research on new ideas often matter, and matter a very great both past and emerging developments suggests, deal. The judgment implicit in the above argument is is public enterprise neces- that now may well be such ZHYPS` PULMÄJPLU[51 7\ISPJ THERE IS A NEED FOR — AND a time. Now, and continu- enterprise in Great Brit- HUNGER FOR — NEW UNDER- ing through the emerging ain, for example, allegedly STANDING, NEW CLARITY, AND era of stagnation, stale- under-performed, yet the mate and decay: A NEW WAY FORWARD THAT IS numbers do not bear this INTELLIGIBLE AND INTELLIGENT out. Between 1950 and As the global and domes- 1985, annual productiv- tic economic, political and ity growth in English public sector mining, utilities, climate change crisis both increase pain and force transportation, and communications companies people to ask ever more penetrating questions, consistently exceeded private sector productivity there is a need for—and hunger for—new under- growth in the same industries in the United States.)52 standing, new clarity, and a new way forward that is 0U[OLTVKLYULYHHZ-YHUJPZJV-SVYLZ4HJPHZHUK intelligible and intelligent. Accordingly, not only may (SKV4\ZHJJOPVKVJ\TLU[PUHYLJLU[/HY]HYK0U- the new “evolutionary reconstructive” models begin ternational Review article, state-owned enterprises to suggest practical ways forward, they also sug- PUTHU`HYLHZHYLVYJHUILHZLMÄJPLU[HZ[OLPY gest ideas about what might become of strategic private counterparts.53 political importance, hence offer hope of building longer term political common ground among seri- Implicit in the above argument are also two ous activists and intellectuals. judgments about the role of ideas (as well as ideol- VN`PUJLY[HPUJVU[L_[Z!>LOH]LUV[LKÄYZ[[OL Similarly, for many decades the only choices practical introduction into American culture of proj- to many have seemed state socialism, on the one ects, models, and public efforts involving the de- hand, or corporate capitalism, on the other—with mocratization of wealth at various levels. In a nation one or another form of social democratic or liberal with little experience with such ideas, the various reform as perhaps a moderating form. When tra- forms may also be thought of as positive ways of ditional systems either falter and fail, or appear in challenging in everyday life what Antonio Gramsci decline, ideas concerning the development of co-

15 ALPEROVITZ AND DUBB: IF YOU DON’T LIKE CAPITALISM, AND YOU DON’T LIKE SOCIALISM, WHAT DO YOU WANT? 0588.html, accessed June 3, 2012. herent new systemic designs also may become of 6 Laurence J. Kotlikoff, The Financial Fix -- Limited MHYNYLH[LYPTWVY[HUJL!;OL`ILNPU[VVMMLYZWLJPÄJ Purpose Banking, Boston, MA: Boston University, March HUZ^LYZ[VZWLJPÄJX\LZ[PVUZJVUJLYUPUN^OL[OLY 23, 2009. a new system (or any system) may offer hope of 7 Fred Mosely, “Time for Permanent Nationalization!”, genuine democracy, equality, community, and eco- Dollars & Sense, March-April 2009. logical sustainability. 8 Willem Buiter, “The end of American capitalism as we knew it,: Financial Times, September 17, 2008 A minimal goal of the above proposals, accord- 9 For example, Citibank had a market capitalization ingly, is that they may offer hand-holds on processes fell to $36 billion by December 31, 2008; by contrast, the amount of bailout funds Citi received from the U.S. of potentially important new forms of change (and government totaled $45 billion. See: Citi, Annual Report therefor strategy), on the one hand, and on pos- 2008, New York, NY: Citi, 2009, page 11. On bailout sibilities for systemic design, on the other—hand- size, see: Jim Puzzanghera, “Citigroup chief thanks taxpayers for $45 billion bailout,” The Network Journal, OVSKZ [OH[ PU [\YU TH` WLYTP[ M\Y[OLY YLÄULTLU[ March 4, 2010, http://www.tnj.com/news/business/ and ongoing development that may contribute to citigroup-chief-thanks-taxpayers-45-billion-bailout, longer term change. accessed June 3, 2012. 10 Robert Pollin, “Tools for a New Economy,” Boston Review, volume 34, no. 1, January-February 2009, Gar Alperovitz, author of America Beyond Capital- http://bostonreview.net/BR34.1/pollin.php, accessed ism, is Lionel R. Bauman Professor of Political Econ- June 3, 2012. omy at the University of Maryland and Co-Founder 11 Roger Runnigen, “Obama Signs Renewal of Export- of the Democracy Collaborative. Steve Dubb is Re- Import Bank That Boosts Lending,” Bloomberg Business search Director of the Democracy Collaborative. Week, May 30, 2012, http://www.businessweek.com/ news/2012-05-30/obama-signs-renewal-of-export- import-bank-that-boosts-lending, accessed June 3, 2012. ENDNOTES 12 Bank of North Dakota, 2009 Annual Report: 90 Years 1 Jim Puzzanghera and Don Lee, “Bernanke sharply of Evolution, Bismarck, ND: BND, 2010, page 6. warns Congress economy is ‘close to faltering’,” 13 Public Banking Institute, State Activity, Resource Los Angeles Times, October 4, 2011, http://articles. and Contact Info, Los Angeles, CA: Banking in the SH[PTLZJVTVJ[I\ZPULZZSHÄILYUHURL Public Interest, 2012, http://publicbankinginstitute.org/ congress-20111005, accessed June 3, 2012. state-info, accessed June 3, 2012. 2 Lindsey Ellerson, “Obama to Bankers: I’m Standing 14 Ted Wheeler, “Why creating a ‘virtual’ state bank ‘Between You and the Pitchforks’,” ABC News, April 3, is a better idea,” OregonLive.com, February 9, 2011, 2009, http://abcnews.go.com/blogs/politics/2009/04/ http://www.oregonlive.com/opinion/index.ssf/2011/02/ obama-to-banker, accessed June 3, 2012. hy_creating_a_virtual_state_ba.html, accessed June 3, 3 Franklin Delano Roosevelt, A Rendezvous with 2012. 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