Worker Cooperatives for a Democratic Economy

Abstract Our article sheds light on two enduring debates within the cooperative literature: the degeneration thesis and the spillover thesis. While the degeneration thesis suggests cooperatives are doomed to failure, the spillover thesis suggests otherwise, contending that the experience of democratic control furthers social change beyond the cooperative itself. By turning to critical theory, we are able to bring new insights into these conversations. The early Frankfurt School placed a primacy on the subjectivity of social actors, arguing that capitalism serves to impact the consciousness, rationality, and depth-psychology of subjects, acculturating them to market societies. By exploring this in conjunction with the literature on cooperatives, we are able to add weight to the degeneration thesis and to demand further concessions from advocates of the spillover thesis. Ultimately, the article stresses the lack of importance placed to date on subjectivity within cooperative studies and argues that this needs to be remedied.