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"This mess we're in"

24.06.12

 

In the spring of 1932, in Compton, California, an unemployed World War I veteran walked out to the farms that still ringed Los Angeles. He offered his labor in return for a sack of vegetables, and that evening he returned with more than his family needed. The next day a neighbor went out with him to the fields. Within two months 500 families were members of the Unemployed Cooperative Relief Organization (UCRO).

That group became one of 45 units in an organization that served the needs of some 150,000 people.

It operated a large warehouse, a distribution center, a gas and service station, a refrigeration facility, a sewing shop, a shoe shop, even medical services, all on cooperative principles. Members were expected to work two days a week, and benefits were allocated according to need. A member with a wife and two kids got four times as much food as someone living alone. The organization was run democratically, and social support was as important as material support. Members helped one another resist evictions; sometimes they moved a family back in after a landlord had put them out. Unemployed utility workers turned on gas and electricity for families that had been cut off.

Conventional histories present the Depression as a story of the corporate market, foiled by its own internal flaws, versus the federal government, either savvy mechanic or misguided klutz, depending on your view.The government ascended, in the form of the New Deal; and so was born the polarity of our politics—and the range of our economic possibilities—ever since.

Yet there was another story too. It embodied the trusty American virtues of initiative, responsibility, and self-help, but in a way that was grounded in community and genuine economy. This other story played out all over the U.S., for a brief but suggestive moment in the early 1930s.

(...)

To say UXA and the other cooperative economies faced challenges is to put it mildly. They were going against the grain of an entire culture. Anti-communist “Red Squads” harassed them, while radicals complained they were too practical and not sufficiently committed to systemic change.

But the main thing that killed the co-ops was the Works Progress Administration and its cash jobs. Those WPA jobs were desperately needed. But someof them were make-work, while the co-op work was genuinely productive.

The co-ops pleaded with FDR's Administration to include them in the WPA. Local governments were helping with gasoline and oil. But the New Dealers weren't interested, and the co-ops melted away. For years they were period pieces, like soup lines and Okies.

Or so it seemed.

Today, the signs of financial and ecological collapse are mounting. We are strung out on foreign debt and foreign oil, and riding real estate inflation that won't last forever. Add the impendingc ollapse of the natural life support system, and the '30s could seem benign by comparison.

In this setting, the economics of self-help are increasingly relevant. The possibility of creating such an economy, though, might seem remote. In the 1930s, there still were farms on the outskirts of cities—family operations that could make barter deals on the spot. Factories were nearby too. Products were simple and made to last, and so could be scavenged and repaired.

(...)

Today's best ideas are often to be found among those rejected in the past. “We are not going back to barter, ”Carl Rhodehamel of UXA once said. “We are going forward into barter. We are feeling our way along, developing a new science.”

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