User:Seththomasjordan/Associative Economics

Associative Economics is an approach to economics that views the global economy as a single, closed system, requiring a more comprehensive coordination of producers, distributors, and consumers if it is to fulfill its task of meeting every human being's basic needs. This approach was pioneered by the Austrian philosopher and economic thinker Rudolf Steiner, and given its fullest expression in his book World Economy (1922). Since then, his ideas have been interpreted, expanded upon, and worked with by countless individuals and have inspired and informed a number of economic innovations including community supported agriculture, ethical banking, social finance, community land trusts, and local currencies.

Local and Global in a Threefold World
Associative economics recognizes the need for trade to continue at national and international levels, but encourages a heightened activity at the local level (appreciating the central role of the individual entrepreneur and the inherent regulatory effect of face-to-face transactions between producers and consumers, or, at the very least, shorter supply chains). At the same time, it sees that the economic organism has become global, has moved beyond national boundaries, and, therefore, that an overly-active involvement by national politicians can be harmful. While social and environmental regulations are certainly needed, the economy is best managed by those who are involved in its activity - by associations made up of all stakeholders (for this reason, it has also been described as an "Altruistic Stakeholder-Managed Economy.")

This picture of an increasingly autonomous and self-regulating economy coincides with Steiner's overall conception of a threefold society. Advocates of what is often referred to as the "threefold social organism" or "social threefolding," promote the autonomy (the separation and conscious interaction) of the three realms of social life: economy, polity, and culture. They see in the cry of the French Revolution - "Liberté, Égalité, Fraternité" - three fundamental ideals of the modern human being that can only find their rightful (and compatible) place in these three spheres. . Freedom and self-determination in the cultural realm - to believe, express, and develop as one sees fit; fraternity (brotherhood/sisterhood) in the economic realm - where, through shared work and division of labor, individuals come together to meet the needs of the whole; and equality in the political realm - where all citizens can come together to agree on their needs, decide what is equally right for all (this can include both laws that safeguard citizens as well "benefits" such as education, healthcare, basic income, etc).

Land, Labor, and Capital
What might be viewed as a dangerous proposition, the deregulation of business, is counterbalanced through its cooperation with equally strong consumer associations. Besides this though, many things which today are considered commodities within the "free-market" framework are to be removed from that category, namely: land, labor, and capital. These so-called "factors of production" are actually matters of right which simply border the economic realm on all sides. Land is part of the commons. It is our common heritage, a resource that belongs to all (including future generations) which needs to be stewarded by those most capable to meet current needs (in this, Steiner corroborates many notable thinkers including Chief Seattle and Thomas Jefferson ). Steiner views labor as a form of "wagery," a descendant of serfdom and slavery (where once we sold our whole body, now we sell our time), as well as an economic untruth, an impossibility which we allow to persist:

"They actually speak as though a kind of sale and purchase took place between the wage-earner who sells his Labour and the man who buys it from him. But this sale and purchase is fictitious. It does not in reality take place... In reality, even in the Labour or wage-nexus, it is values which are exchanged. The worker produces something directly; he delivers a product, and it is this product which the enterpriser [Unternehmer] really buys from him. In actual fact, down to the last farthing, the enterpriser pays for the products which the workers deliver to him. It is time we began to see these things in their right light." Lastly, capital is the added value built up through the application of intelligence to labor. It is the human spirit manifest in the economic process. Often taking the form of money, it further frees and empowers the entrepreneur to apply their intelligence. The artist and "social threefolder" Joseph Beuys famously stated this truth as "Art=Capital" (Kunst=Kapital), or alternatively, for his art piece in the 'Luna Luna' art fair in 1987, "Money is not CAPITAL at all. CAPACITY is CAPITAL." Capital is therefore also a product of our common heritage (this time cultural), and derives especially from our access to education.

In an Associative Economy, therefore, these rights phenomena would be held in trust on behalf of the community and consequently managed by those with both the desire and capacity.

Overall, there are no examples of large-scale communities or societies which apply all of the above principles; instead we see them taken up for the most part in smaller initiatives and piece-meal. One of the most significant, and successful, economic endeavors that one could see as aligned with associative principles is the Mondragon Corporation in Spain. Smaller communities inspired by Steiner's economic and social ideas include the Camphill Villages (with over 100 on 5 continents) and the SEKEM Initiative near Cairo, Egypt.