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Entrepreneurs could sidestep the VCs by turning to a “swarm” of small investors — and maybe supplant the entire VC system. By the end of the summer, he’d raised more than a million dollars in cryptocurrency. The legality of the model is uncertain,

High hopes for a liberating Internet have devolved into the dominance of a few mega-companies and the NSA’s watchful algorithms. Platforms entice users to draw their communities into an apparently free and open commons, only to gradually enclose it by tweaking terms of service, diluting privacy, or charging fees for essential features.

Facebook started flocking to Ello

The line between workers and customers has never been so blurry. Online platforms depend on their users

looking for ways to build platforms of their own.

VC-backed sharing economy companies like Airbnb and Uber have caused trouble for legacy industries, but gone is the illusion that they are doing it with actual sharing.

OuiShare, which connects sharing-economy entrepreneurs around the world

it’s becoming clear that ownership matters as much as ever.

Loomio is now being used by governments, organizations, and schools; a significant portion of the current usage comes from Spain’s ascendant political party, Podemos.

new kinds of ownership the new norm. There are cooperatives, networks of freelancers, cryptocurrencies, and countless hacks in between.

aspire toward an economy, and an Internet, that is more fully ours.

Jeremy Rifkin, a futurist to CEOs and governments, contends that the Internet-of-things and 3-D printers are ushering in a “zero marginal cost society” in which the “collaborative commons” will be more competitive than extractive corporations.

People are recognizing that doing business differently will require changing who gets to own what.

form of ownership

Cooperative intelligence

Occupy’s kind of direct democracy and made it available to the world in the form of an app — Loomio

It’s a worker-owned cooperative that produces open-source software to help people practice consensus — though they prefer the term “collaboration” — about decisions that affect their lives.

Rather than giving up on ownership, people are looking for a different way of practicing it.

Enspiral, an “open value network” of freelancers and social enterprises devoted to mutual support and the common good.

The worker cooperative is an old model that’s attracting new interest among the swelling precariat masses

Co-ops help ensure that the people who contribute to and depend on an enterprise keep control and keep profits

multi-stakeholder cooperative — one in which not just workers or consumers are voting members, but several such groups at once

“It’s more about hacking an existing legal status and making these hacks work.”

Sensorica pays workers for their contributions to the product. Unlike Sovolve, they participate in the company democratically. Everything from revenues to internal criticism is out in the open, wiki-style, for insiders and outsiders alike to see.

Only one device has been sold

Bitcoin

makes possible decentralized autonomous organizations, or DAOs,

The most ambitious successor to Bitcoin, Ethereum,

to develop decentralized social networks,

even an entirely new Internet

Swarm’s competition makes it hard not to notice the inequalities built into the models vying to disrupt the status quo. Bitcoin’s micro-economy holds the dubious distinction of being more unequal than the global economy as a whole. On a sharing platform, who owns, and who just rents? In an economy of cooperatives, who gets to be a member, and who gets left out?

Sooner or later, transforming a system of gross inequality and concentrated wealth will require more than isolated experiments at the fringes — it will require capturing that wealth and redirecting its flows. This recognition has been built into some of the most significant efforts under the banner of the so-called “new economy” movement. They’re often offline, but that makes them no less innovative.

connecting them to large anchor institutions in their communities; hospitals and universities with deep pockets can help a new enterprise become viable much more quickly than it can on its own

Government is an important source of support, too. Perhaps more than some go-it-aloners in tech culture might like to admit, a new economy will need new public policies

The early followers Francis of Assisi at first sought to do away with property altogether

There are many ways to own. Simply giving up on ownership, however, will mean that those who actually do own the tools that we rely on to share will control them.

changing what owning means altogether.

it is the way food is produced and sold for profit, in a process controlled by agri-industrial giants and supermarkets – rather than food consumption or human population growth as such – that pushes at the earth’s natural limits.

food losses at one-third of what is produced, or 1.3 billion tonnes/year

In rich countries, farming practices are more efficient, transport and storage facilities are better, and much less food is lost between farm and shop. But then “modern consumer culture” takes over: supermarkets often “reject entire crops of perfectly edible fruit and vegetables at the farm” – e.g. 30% of the vegetable crop in the UK – because of its size or appearance.

30% of what is harvested from the field never actually reaches the marketplace (primarily the supermarket) due to trimming, quality selection and failure to conform to purely cosmetic criteria”

the estimated average cost to households in the UK is £480/year per household.

The report suggests that it is not food production per se that is unsustainable, but production of food for the distorted market, i.e. the commodification of food. It is “market mechanisms” that deprive poor country farmers of the means to invest in basic infrastructure and “market mechanisms” according to which supermarkets trash millions of tonnes of good food.

■ Average crop yields increased by 20% between 1985 and 2005, “substantially less than the often-cited 47% production increase for selected crop groups”; ■ Globally, only 62% of crop production by mass is for human food; 35% is for animal feed and 3% for biofuels. ■ The land devoted to raising animals – including pasture, grazing and animal feed production – is an “astonishing” three-quarters of the total, and “the amount of land (and other resources) devoted to animal-based agriculture merits critical evaluation”. ■ Most agricultural expansion is in the tropics, where “about 80% of new croplands are replacing forests”. “Slowing (and ultimately, ceasing) the expansion”, particularly in the tropics, is “an important first step” to sustainability. ■ Irrigation accounts for 70% of global freshwater withdrawals, which is “of particular concern”. ■ Fertiliser use, manure application and leguminous crops (which fix nitrogen in the soil) have “dramatically disrupted” the global nitrogen and phosphorus cycles.

b) to artificially inflate the price and profitability of labour inputs

Things that in all previous eras of capitalism the elite desired to be as cheap as possible—to ease wage pressures—are now made as expensive as possible

capital migrates away from production and from private-sector services towards public sector services.

capitalism being replaced by a stagnant neo-feudalism

central bank, pumping money into the system

the state, propping up effectively insolvent banks

the migrant labour exploiter

the innovator someone who invents a way of extracting rent from low-wage people

But as soon as technology allowed it, we started to create organisations where the positive effects of networked collaboration were not captured by the market.

Wikipedia

Fortunately there is a third impact of info-tech. It has begun to create organisational and business models where collaboration is more important than price or value.

Linux

the platform co-operatives

The technology itself is in revolt against the monopolised ownership of intellectual property, and the private capture of externalities.

We must promote the transition to a non-capitalist form of economy which unleashes all the suppressed potential of information technology, for productivity, well.being and culture.

The strategic aim is: to reduce the amount of work done to the minimum; to move as much as possible of human activity out of the market and state sectors into the collaborative sector; to produce more stuff for free.

If the aim is for humanity to do as little work as possible, you can do it through three mechanisms. One is to automate. The other is to reduce the input costs to labour, so that we can survive on less wages and less work. The third is to push forward rapidly the de-linking of work and wages.

The city is where the networked individual wants to live

First—be overt. Help people to conceptualise the transition by actually talking about it.

Next—switch off the great neoliberal privatisation machine.

We know what it’s there for—to hand public assets to the private sector so that the profits of decaying businesses are temporarily boosted

The next proposal is more radical: model reality as a complex system.

Next—promote the basic income.

The basic income is an idea whose time is coming, because there won’t be enough work to go around. For me the basic income is a one-off subsidy for automation—to un-hook humanity from bullshit job creation and promote the delinking of work and wages.

However, it’s a transitional measure.

Next—actively promote the collaborative sector over the market and the state.

You have to understand the benefits of these entities are not completely measurable in GDP terms.

The building block is the co-op, the credit union, the NGO, the non-profit company, the peer-to-peer lender and the purely voluntary or social enterprise.

You have to promote new ways of measuring activity and progress.

Finally, understand and fight the battle over the externalities.

the state and eventually the commons should have first rights to all the data just the same as in a republic it owns all the land

Ultimately, however, the greatest good comes from the common ownership and exploitation of data, because it establishes the principle that this vast new information resource—which is our collaborative behaviour captured as data—is part of the commons.

Would capitalism collapse?

But you would attract the most innovative capitalists on earth, and you would make the city vastly more livable for the million-plus people who call it home.

No. The desperate, frantic “survival capitalists” would go away—the rip-off consultancies; the low-wage businesses; the rent-extractors.

All the other challenges would remain: the environmental challenge—not just low carbon but the preservation of quality living environments in a city sometimes deluged with visitors. Also the ageing challenge and the debt challenge.

a common platform for the left, for social democracy and for liberal capitalism

I could be completely wrong. But if I am right, it makes sense for all cities to ask themselves: could we become the first city to begin a demonstrable and tangible transition away from neoliberal capitalism, towards a society of high equality, high well-being, high collaboration?

the collaborative city, the city of participatory democracy, the networked city

In Turkey, protesters have been taking to the streets and clashing with riot police for over two weeks in response to government attempts to tear down the trees and resurrect an old Ottoman-era barracks at the location of Istanbul’s beloved Gezi Park.

Now, protests over similar seemingly “trivial” local grievances are sparking mass demonstrations elsewhere. In Brazil, small-scale protests against a hike in transportation fees in Sao Paulo revealed the extreme brutality of the police force

Meanwhile, in Sarajevo, the inability of a family to obtain travel ID for their sick baby — who needs urgent medical attention that she cannot receive in Bosnia-Herzegovina — exposed the fundamental flaws at the heart of the nominally democratic post-Yugoslavian state. On June 5, while the government was busy negotiating with foreign bankers to attract new investment, thousands of people occupied parliament square, temporarily locking the nation’s politicians up inside and forcing the prime minister to escape through a window.

Fed up with increasing inflation, crumbling infrastructure and stubbornly high inequality and crime rates, many Brazilians are simply outraged that the government is willing to invest billions into pharaonic projects that do not only ignore the people’s plight but actively undermine it.

After four nights of violent repression this week, the protests now appear to be gaining momentum.

On Friday, Bulgaria joined the budding wave of struggles that began in Tunisia and Egypt in 2011 and that was recently revived through the Turkish uprising. After the appointment of media (and mafia) mogul Delyan Peevski as head of the State Agency for National Security, tens of thousands took to the streets of Sofia and other cities throughout the country to protest his appointment, which was approved by parliament without any debate and with a mere 15 minutes between his nomination and his (pre-guaranteed) election.

Greece, in the meantime, finally appears to have been waken up from its austerity-induced slumber. Following the decision of the Troika’s neoliberal handmaiden, Antonis Samaras, to shut down the state’s public broadcaster ERT overnight and to fire its 2,700 workers without any warning whatsoever, the workers of ERT simply occupied the TV and radio stations and continued to emit their programs through livestreaming, making ERT the first worker-run public broadercaster in Europe.

At first sight, it may seem like these protests are all simply responses to local grievances and should be read as such. But while each context has its own specificities that must be taken into account, it would be naive to discard the common themes uniting them.

If we take a closer look at each of the protests, we find that they are not so local after all. In fact, each of them in one way or another deals with the increasing encroachment of financial interests and business power on traditional democratic processes, and the profound crisis of representation that this has wrought.

In a word, what we are witnessing is what Leonidas Oikonomakis and I have called the resonance of resistance: social struggles in one place in the world transcending their local boundaries and inspiring protesters elsewhere to take matters into their own hands and defy their governments in order to bring about genuine freedom, social justice and real democracy.

Now that has come to an end. A new Left has risen, inspired by a fresh autonomous spirit that has long since cleansed itself of the stale ideological legacies and collective self-delusions that animated the political conflicts of the Cold War and beyond. One chant of the protesters in Sao Paulo revealed it all: “Peace is over, Turkey is here!”

And we learned an important lesson: internal democracy doesn’t work without a true community.

the dream was abundance

we started calling the Internet “the Electronic Indies.”

In Iberian history, “the Indies” was the name of the new territories, of the New World discovered by Columbus and soon conceived of, because of its abundance, as the “original paradise.”

In 2001, Juan Urrutia had published his well-known essay “Networks of people, the Internet, and the Logic of Abundance” in the theoretical magazine Ekonomiaz. Distributed networks appeared as the basis of new P2P relationships and an ever-growing diversity

But we didn’t have money

We began to write, and on the seventh of October, 2002, el Correo de las Indias [the Indies Mail] was born, with Bitácora de las Indias [Log of the Indies] in the masthead.

The blog was the way we found our clients, but, more importantly over time, the current indianos.

The business would be the economic structure of the community we were creating, and as such, would have all of the the sources of wealth and income; we would not have — and still don’t have — savings, properties, or personal clients. The cooperative is our community savings and the only owner of all that we enjoy.

In short: economically, we’re closer to a kibbutz than to the big cooperatives at Mondragon.

Understanding the power of network topologies was our principal point of differentiation, both in theory –in dialogue or as cyberactivists — and also in the market.

Later, each cooperative in the group strengthened the model. Today, the consulting business is the group’s main source of financing. And creating and organizing new cooperatives and businesses constitutes our principal activity.

This is about remarking on the battleground itself: big cities, not nations, as the symbolic and political space for the network society.

In SP, and especially in Istanbul, the mobilizations have had a clear discourse on the development of state authoritarianism

they don’t see themselves reflected or recognized in the social discourse, which is now outdated. The struggles for public space in Istanbul or for access to transportation in Sao Paulo are a lot more than mere municipal policies

But the leaders — and beneficiaries — of this growth, a precarious first generation of a new middle class, lives a hard, intense life, between low-paying jobs and constant training.

turns toward the authoritarian development of the nation-state

movements on the digital, social and even geographic periphery, have created their own centrality and their own logic, which we can summarize in three points as we look to the future:

The starting point and point of conflict with power is in the closest urban policies.

The demands are concrete and clear, and could, in fact, be satisfied by a local administration, but they summarize a much broader social situation

the debate

This authoritarian drift, paired with a reactionary discourse on intellectual property that criminalizes a generation which has made P2P culture a mark of daily identity, seems to be the only way the nation-state knows how to react technological change, trying to exclude, both in the present and in the future, those who somehow feel they could share as they build.

Istanbul and Sao Paulo are a step into a new phase of distributed social movements

what’s dominant is cooperation, not competition, among other things, because the market for automotive parts is not a true market, but rather a oligopsony (there are only a few buyers at the end of the chain).

Competition requires that where one wins, another loses

But are we talking about the same thing? Certainly not.

Cooperation among big businesses should worry us, not make us happy.

the zero sum shows up in a large part of exchanges between humans.

does it really make sense to propose rule changes in those environments? Is it possible to hack them? Obviously, if we didn’t think so, we wouldn’t be selling consultancy on the market, but if we thought that was enough, we wouldn’t be committed to building alternatives for ourselves and inviting others to make their own.

every exchange that is a zero-sum game is a bad exchange, something that shouldn’t be done because either you lose, or it’s no good at all (when both sides remain the same), or, worse still, if you win at the cost of the other in the exchange, you mine the trust of the other, and you sow an impending, inevitable, and painful betrayal. So, does it really materialize in “a large part of exchanges between humans?”

If we read the paragraph, we realize that the setting Julen is talking about is a well-defined institutional environment: labor scales and classical teaching organizations. We’re far from schools of the commons or cooperation based on the deliberation of a phyle.

The question is whether or not we think that salaried relationships will continue to be the basis of what we call a business, which organizes a good part of the co-opetition between people to reach the market.

Values take hold in different ways, according to the social structures in which we try to develop them. For example, if we put ourselves in the P2P mode of production, the issue is not whether one produces for the commons or for the market, because one will produce with and for both, creating competition and cooperation at the same time, as in the “coming capitalism,” or in every alternative model based on the dissipation of rents.

However, a certain degree of cooperation is required, at least on the part of those who are on each side

Because cooperation in that mold creates that whole gamut that Sennet and Julen talk about, and generally, apart from an arduous and conscious battle like ner is fighting,

debate on deeeper cultural values

send salaried work, even if only little by little, to the memory trunk from an inglorious time, and once and for all

Among Colau’s commitments to the people of Barcelona was a local tax cut for small businesses and households, assistance to the poor, and the construction of housing for 15,000 refugees

All of this could be achieved while keeping the city’s books in the black, simply by reducing the municipal budget surplus.

Spain’s central government, citing the state’s obligations to the EU’s austerity directives, had enacted legislation effectively banning any municipality from reducing its surplus.

At the same time, the central government barred entry to the 15,000 refugees for whom Colau had built excellent housing facilities.

To this day, the budget surplus prevails, the services and local tax cuts promised have not been delivered, and the social housing for refugees remains empty. The path from this sorry state of affairs to the reinvigoration of Catalan separatism could not be clearer.

In any systemic crisis, the combination of austerity for the many, socialism for bankers, and strangulation of local democracy creates the hopelessness and discontent that are nationalism’s oxygen

Progressive, anti-nationalist Catalans, like Colau, find themselves squeezed from both sides: the state’s authoritarian establishment, which uses the EU’s directives as a cover for its behavior, and a renaissance of radical parochialism, isolationism, and atavistic nativism. Both reflect the failure to fulfill the promise of shared, pan-European prosperity.3

The duty of progressive Europeans is to reject both: the deep establishment at the EU level and the competing nationalisms ravaging solidarity and common sense in member states like Spain.

The EU treaties could be amended to enshrine the right of regional governments and city councils, like Catalonia’s and Barcelona’s, to fiscal autonomy and even to their own fiscal money

They could also be allowed to implement their own policies on refugees and migration.

EU could invoke a code of conduct for secession

As for the new state, it should be obligated to maintain at least the same level of fiscal transfers as before.

the new state should be prohibited from erecting new borders and be compelled to guarantee its residents the right to triple citizenship (new state, old state, and European).

Europe needs to develop a new type of sovereignty

Local co-ops band together to form larger co-ops of co-ops—power suppliers that run power plants, cooperatively owned mining operations, and democratic banks that finance new projects.

It’s also a neglected democracy

by member-owners of the co-ops

and by a society that forgets what cooperative economic development have achieved.

Electric cooperatives are conservative institutions, carrying out the business of reliability while balancing their members’ interests with formidable inertia. But they’re also poised to lead a radical shift to a more renewable distributed-energy grid. They can be fiefdoms for long-entrenched establishments, but they’re also bastions of bottom-up, local self-governance.

depends not just on the whims of investors or on the promises of presidents, but on the readiness of the people who use it to organize.

We Own It, for instance, is a new network started by young but seasoned cooperators determined to support organizing among co-op members

Heneghan believes that co-ops are uniquely positioned to benefit. Their lean, local, customer-centered kind of business has already made them pioneers in easy, low-risk financing for energy-efficiency improvements and renewables.

Co-ops not locked into G&T contracts have been especially ambitious in switching to renewables.

electric co-ops still lag behind the national average in their use of renewables. The local co-ops are bound to their decades-long G&T contracts, and the G&Ts say they can’t walk away from their past investments in coal anytime soon.

co-op staffs know as well as anyone that their democracy is in some respects nominal—an opportunity, but by no means a guarantee.

According to Derrick Johnson, the president of One Voice and the state NAACP, “Our ultimate goal is to help them understand how to develop a strategy to maximize members’ participation.” Then, he hopes, “they can begin to think about renewable energy differently.”

Without member pressure, for instance, managers often have an incentive to sell more power rather than helping members reduce their consumption, their costs, and their carbon footprints.

In particular, he pointed out the billions of dollars in “capital credits” that co-ops collectively hold—excess revenues technically owned by members, but that often go unclaimed, serving as a pool of interest-free financing.

“There are so many things that point to a structural change in the electrical industry.” He compared the change to what cellular did to telephones.

By way of explanation, a staff member repeated what I’ve been told by the leaders of other big co-ops: Low turnout means that members are satisfied.

“If the members are not involved in any significant way, the directors become very insular, and they can basically do with the co-op as they please.”

As the Trump administration assembles its promised trillion-dollar infrastructure plan, it seems unlikely to unleash a fresh spree of cooperative rural development.

collective-action problem in an open network context

How do you know that a given document, certificate or dataset -- or a vote or "digital identity" asserted by an individual -- is the “real thing” and not a forgery? 

online “ledger” that keeps track of all transactions of all bitcoins

set of transactions known as the “block”

a kind of permanent record maintained by a vast distributed peer network

blockchain technology could provide a critical infrastructure for building what are called “distributed collaborative organizations.”

to give its members specified rights within the organization, which are managed and guaranteed by the blockchain

blockchain technology is not confined to digital currency

reliable systems to manage their inter-relationships on network platforms.

Bitcoin 2.0 projects

a way to create distributed networks of solar power on residential houses

Transactions would be near-instantaneous, and transaction costs would be minimal.

traditional issues related to shared common-pool resources—such as the free rider problem or the tragedy of the commons—could be addressed with the implementation of blockchain-based governance, through the adoption of transparent decision-making procedures and the introduction decentralized incentives systems for collaboration and cooperation.

to reach consensus and implement innovative forms of self-governance. The possibility to record every interaction on a incorruptible public ledger and the ability to encode a particular set rules linking these interactions to a specific transactions (e.g., the assignment of cryptographic tokens) makes it possible to design new sophisticated incentive systems

Decentralized blockchain technologies bring trust and coordination to shared resource pools, enabling new models of non-hierarchical governance, where intelligence is spread on the edges of the network instead of being concentrated at the center

commons-based peer-production communities

have had a hard scaling up, without turning into more bureaucratic and centralized institutions

could overcome many collective-action challenges that cannot be easily solved by conventional institutions today

Who guards the guards? 

blockchain technology does offer more formidable tools for better protecting the perimeter of the commons and for empowering commoners to decide their own fate

in Brazil today. CoopHab is a major housing federation of co-operative savings societies.

During the industrial revolution English working people were excluded from bank lending though pawnbroking was rife. Mutual aid savings clubs developed interest-free lending systems for housing. The most successful were the Terminating Building Societies for buying land and building houses.

Sweden

Operationally, JAK is very similar to a credit union, except that members do not earn any interest on their savings or dividends on their shares.

The total cost of a JAK loan covers four things:(12)loan appraisal and set-up cost at a fee that is 2-3% of the approved loan value.an annual administration fee equal to 1% of the loan.an annual fee of approximately $30 to support the JAK educational system and volunteer services.(13)an equity deposit equal to a 6% of loan value to cover risk on any loan in the portfolio.

Members are strongly encouraged to pre-save in order to qualify for a loan.(15) Members also contract to continue saving while they are repaying their loans.

The Greenbacks would not be backed by gold, but by the farmers’ crops, which would be stored in sub-Treasury warehouses paid for by the government.

Swiss WiR

President Lincoln

free Greenback dollars

Lincoln

he had led the introduction of a paper money not backed by gold or silver, and had shown that the government could create, issue, and circulate by fiat the currency and credit needed to satisfy the spending power of the government and the buying power of consumers.

the privilege of creating and issuing money is not only the supreme prerogative of government, but it is the government’s greatest creative opportunity.

National Farmers Alliance and Co-operative Union, led by Charles Macune, developed the Sub-Treasury Plan.

JAK banking, CoopHab and Community Land Trusts work well but are below national policy radar. This is not entirely the case for co-operative commonwealth systems.

So this was not simply a co-operative currency. It was a new national currency under a co-operative and state partnership to expunge the debt peonage imposed by merchants and bankers.

Infuriated, farmers and workers created their own party in 1891 to carry forwardmonetary reform and a co-operative economy. The new Populist party won some local, state and Congressional elections before falling into decline after 1895.

A.C. Townley launched the Non-partisan League (NPL)

Bank of North Dakota

Henry Ford and Thomas Edison suggested a novel solution.

proposed that new money be created by issuing interest-free government bonds

Frederick Soddy

made the first case for an ecological economics free of debt

“100% money.”

100% reserve requirement.

Clifford H Douglas

He argued that a clear-cut and labour-saving solution would be for Government to create new money, interest-free as “Social Credit.”

First all citizens would receive a National Dividend.

Second, Douglas proposed that publicly-owned producer banks be set up in each region of the UK to provide finance debt-free to industry and enterprises.

From 1929 monetary reform attracted a wide audience In the UK, Australia, New Zealand, the USA and Canada with growing grassroots calls ranging from public banking to universal basic income.(34) The New Deal of Franklin Roosevelt took inspiration from John Maynard Keynes.

reliance on horizontal networks and distributed power within communities

opposed to the competition between hierarchical organisations

inequality

contradictions

Empowerment in an era of growing inequalities

the exact opposite of capitalism

the exact opposite of homo economicus’ iconic egotism

Two main groups of criticism have emerged: one on ownership structures and the other on employment.

Growing economic inequalities

fueled both by patrimonial inequalities

income inequalities

If we want to assess whether it should be seen as the first part of a new economic paradigm or as capitalism’s latest trick to survive at all costs, we have to analyze its likely effects on inequality.

From a collective standpoint, it might well be better to have access to a resource rather than owning it.

But if someone asks you to free yourself from all earthly possessions, you should always ask: if it’s not mine, then who owns it?

Sometimes, owning is a way not to be owned!

sharing economy: after all, it mostly consists of venture capitalist-backed startups

Employees and customers are but a mean to an end, and in general, a good way to maximize return on investment is to get your customers to pay as much as possible (non-price competitiveness) and on the other side to pay your employees as little as possible (price competitiveness).

shareholders are not peers (from Latin par, “equal”), but overlords

your business model is based on your ability to sustain a community

This point is the most controversial of all. Sharing economy services could accelerate the phenomenon of job destruction.

Despite all those nice speeches about empowerment and entrepreneurship, people in the sharing economy are nothing but an extreme precariat

Real wages started stagnating while productivity per capita continued to increase.

a new deal had to be made: people would no longer be paid according to the value they actually produced, but they would get — seemingly — unlimited access to credit.

computers and robots will soon replace most human labor anyway. Wage labor cannot be saved, and rather than fighting long-lost battles, people should start thinking seriously about solutions such as Universal Basic Income.

neo-liberal revolution has left the basic structures of welfare

relatively untouched

If you cannot predict something with a reasonable amount of certainty, stop arguing endlessly about it and start acting towards the outcome you would like to see

What happens next, no one can tell. Are Silicon Valley venture capitalistss currently being fooled into creating the embryo of a P2P economic paradigm, in which they will lose most of their influence? Or are the enthusiasts talking about empowerment being tricked into creating a new kind of serfdom?

ancient Skeptic philosophers

epoché

remarks

I will make two

First, we should avoid using the concept of a “sharing economy”

Men are both altruistic and egoistic, and that’s perfectly fine.

Will big companies be able to face new competition from startups and win over new customers? If that is your main concern, you should probably stop talking about communities and peers. If the collaborative economy cannot help you solve our growing inequality problem, it should be of no interest to you.

wasteful overuse is a tragedy of the unmanaged commons

creating private property

If cooperation fails, nobody can use the resource.

Each one can block the others’ use

a hidden tragedy of the anti­commons.

a brief overview of the anticommons lexicon

three basic types: private, commons, and state property

private property

private property is about an individual decision maker who directs resource use.

Commons property refers to shared resources, resources for which there is no single decision maker.

open access

open access

group access

State propert

process that is, in principle, responsive to the needs of the public

Privatizing a commons may cure the tragedy of wasteful overuse, but it may inadvertently spark the opposite.

too many people can block each other from creating or using a valuable resource. Rightly understood, the opposite of overuse in a commons is underuse in an anticommons.

clear rights and ordinary markets are not enough

Wasteful underuse can arise when ownership rights and regulatory controls are too fragmented.

The anticommons parallel to open access is full exclusion in which an unlimited number of people may block each other.

With full exclusion, states must expropriate fragmented rights or create hybrid property regimes so people can bundle their ownership

differs from open access: an anticommons is often invisible

group exclusion in which a limited number of owners can block each other. For both group access and group exclusion, the full array of market-based, cooperative, and regulatory solutions is available.

For group exclusion resources, the regulatory focus should be support for markets to assemble ownership and removal of roadblocks to cooperation.

Much of the modern economy – corporations, partnerships, trusts, condominiums, even marriages – can be understood as legally structured group property forms for resolving access and exclusion dilemmas

drug patents

“if commons leads to ‘tragedy,’ anticommons may well lead to ‘disaster’”

underuse caused by multiple owners is unfamiliar

we need to name the phenomenon: the tragedy of the anticommons should join our lexicon.

Heller, M. 1998. “The Tragedy of the Anticommons: Property in the Transition from Marx to Markets.” Harvard Law Review. 111:621.

People participate in peer production communities

commons-based peer production refers to any coordinated, (chiefly) internet-based effort whereby volunteers contribute project components, and there exists some process to combine them to produce a unified intellectual work.

Pirate Bay

Wikipedia

Sourceforge

Linux

It can be argued, however, that in the development of any less than trivial piece of software, irrespective of whether it be FOSS or proprietary, a subset of the (many) participants always play -explicitly and deliberately- the role of leading system and subsystem designers, determining architecture and functionality, while most of the people work “underneath” them in a logical, functional sense.

Managerial pay has increased prodigiously; income inequality has sharpened, affecting women and marginalized communities most acutely, and trillion of dollars of individual wealth have been tucked away in tax havens. Beyond that, there has been a general shift away from direct employment, leaving more and more workers vulnerable to stalled worker rights, as well as declining wages and benefits.

the Web has not made good on its cyber-utopian promises of democracy or social well-being; the rise of the digital commons and practices of peer production, while profoundly important, has not succeeded in generating business models that can deliver livelihoods for practitioners.

highly concentrated ownership of robots seems the likely outcome

financing and legal support

Platform co-ops have emerged in areas like child care, art, journalism, transportation, social media, and food.

it is time to determine in which sector this business model works best

public policy

centralization of data and platforms ownership

The fairer digital economy we need is already emerging everywhere around us.

The extent of the tools we can offer comes down to the success of this crowdfunding campaign.If we get the money to develop the technology, then projects going through incubation can offer supporters black chain agreements and in turn offer payment contingent of future events.  This is a big deal.

While HTML5 has already brought many new capabilities to the web, it is WebRTC that will spark the most innovation. The ability to directly connect to other web browser opens a new world of possibilities for web developers, enabling new types of applications in telecommunications, gaming, and any other field involving direct user-to-user interaction.

WebRTC will also provide new challenges for government censorship and controlling regimes; the peer-to-peer streams will be very difficult to monitor and shut down.

WebRTC will cause major disruption to the billion dollar markets of video conferencing and Internet telephony. You will no longer need Skype on your desktop or smartphone, nor will you need a complex Webex or a Telepresence system.

The Internet is about to undergo a new wave of innovation. We’re moving to a world of seamless communication, directly between peers and across all devices.

Citing Linebaugh’s book, The Magna Carta Manifesto, Chomsky writes:

With the commons no longer protected for cooperative nurturing and use, the rights of the common people were restricted to what could not be privatized, a category that continues to shrink to virtual invisibility. 

Its goal was to protect the source of sustenance for the population, the commons, from external power -- in the early days, royalty; over the years, enclosures and other forms of privatization by predatory corporations and the state authorities

While the mainstream likes to dismiss Chomsky as an out-of-touch lefty with a cult following, who else is pointing out that the Magna Carta’s basic guarantees are indeed being shredded?

the salaries of chief executives rising by more than 300 times than that of the average US worker

USA

ichest 1% (not including capital gains) equals that of the bottom 90%

“Citizens know that the establishment has either lied to them or been totally incompetent. They feel that the economic system is rigged. They have lost trust in government and in the fairness of the political and economic system.”

I believe we can construct a world where the economy performs better for all, based on solidarity”.

“Some governments cut down on social security to grow GDP,” he said, “but the really important aspect is well-being. People actually feel better when they co-operate rather than being selfish.”

“There is going to be volatility, and co-ops are better able to manage risks than the private sector,”

Asked how much co-operatives could achieve while surviving in competitive markets, Prof Stiglitz warned that they “cannot ignore the laws of the economy”.

government regulation

t isn’t just the issue of government vs private sector.”