Joining Pope Francis, the influential, left-leaning author of Postcapitalism, Paul Mason, and the rap emperor Jay Z in proposing cooperatives as the most rational economic structure and best weapon against economic inequality, here is Charles Moore — a Margaret Thatcher biographer, right-wing journalist, and former editor of The Spectator and Daily Telegraph. He is so conservative that he converted to Roman Catholicism after the Church of England decided to permit the ordination of women priests. Where did he proclaim his love of a style of ownership that has led to muttering diagnoses of ill-advised Marxist tendencies in nearly everyone else who has — from the charismatic pontiff to the most undeniably obscure bloggers? In last weekend’s Wall Street Journal, no less, in a riveting argument quoting Karl himself — approvingly. Sections worthy of special note:
…There is clearly an unmet need for a politics that goes beyond mere grievance-peddling to develop a new way of thinking about what makes a society free and secure at the same time. If this were easy, we would have heard more of it by now, and I won’t pretend to have the answers. But certain basic principles seem like the proper foundation…
Take ownership much more seriously.
Why are so few companies owned by the people who work for them, and why do both liberal and conservative political parties not offer greater incentives, such as tax advantages, for this to change? It is extraordinary that the joint stock company, the foundation of modern commercial and industrial wealth, is still so little influenced by the views of shareholders.
This is perhaps most evident in the preposterous salaries paid, particularly in the U.S. and Britain, to top executives of public companies. If the owners of these companies truly exercised authority over what is theirs, this wouldn’t happen. If these enterprises had grown over the last 20 years at the same rate as pay for the men who run them (it usually still is men), no one would be talking of a crisis of capitalism.
Ownership of housing, stocks and pensions is an area where creativity has died. This failing of our consumer society may owe something to the baby boomers’ desire to “have it now,” but another part of the problem is that people are correctly no longer confident that what they save now will be available to them later. Savings need more long-term government protection than they receive in most Western societies. A business culture based on deals and bonuses means that the best business minds are not interested in saving.
The ideal of ownership also needs to apply more fully to civil society. It might be a good idea, for example, if citizens could establish ownership rights over their local school by becoming “members.” Under the existing arrangements, how much can parents and communities creatively affect what happens in schools? The charter-school movement in the U.S. and “academies” and “free schools” in Britain are working in the right direction but remain a long way from something citizens can feel they own.
These rights would give people a voice when things go wrong, rather as some congregations have a say in their churches. In Britain, there is an admirable and long-standing body called the Wine Society, wholly owned by its members with the sole purpose of getting them good wine at good prices. There could be some bold ideas about applying this principle to things so important that they can’t be bottled, such as health.
The Victorians were more imaginative than we are about principles of mutuality—credit unions, building societies, the cooperative movement. Such organizations feel creakier in an age when people want larger sums, faster. But is it really beyond the skill of our great modern business brains to develop these concepts and adapt them to modernity? Financial creativity, unfortunately, really has become the preserve of the few, for the few.