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Income equality is getting worse. Can the co-op model solve this problem?
Co-ops are more pervasive than you think. They just suffer from a marketing problem.
- The cooperative model accounts for $154B every year in America.
- America leads the world with cooperatives, with over 30,000 businesses operating under this model.
- Co-op advocate Nathan Schneider believes this model can help level the economic playing field.
What is a Co-operative?
Nathan Schneider plays a game at strip malls. The activist-journalist and University of Colorado Boulder media studies professor tries to guess how many businesses were directly or indirectly inspired by co-ops. The number is higher than you'd expect.
Whether it's organic food or fair trade coffee or Visa labels in the windows of the small business or chains like Dairy Queen and Best Western, cooperatives are built into their model.
Reading Ours to Hack and Own, a book on the cooperative tradition that Schneider co-edited, I learned that the nation with the largest number of cooperatives is right here. America has over 30,000 businesses built under this model. Co-ops account for $154 billion every year in the U.S. I met Schneider because I too work for one, and during our talk he educated me on the vast influence of cooperatives on American businesses, a fact I had never stopped to contemplate.
While there are a number of variables in the cooperative model, the basic principles, followed by co-ops around the world, were created by the Rochdale Society of Equitable Pioneers in 1844:
- Voluntary and open membership
- Democratic member control
- Economic participation by members
- Autonomy and independence
- Education, training, and information
- Cooperative among cooperatives
- Concern for community
The Next Economy: Worker-Led, for Public Interest
According to Worldwatch Institute, in 2012 one billion people around the planet were part of a cooperative. The 300 largest co-ops are worth $2.2 trillion. Dating the cooperative model to an origin point is impossible since tribes generally worked under this model. The problem, Schneider says, is that players in the capitalist model take credit for the work that cooperatives have done. For example, credit cards.
Visa, he says, was originally Bank Americard. This early Visa credit card, founded in 1958, was not working under the guidance of Bank of America. A decade later, Dee Hock founded a network of banks that ran under the cooperative model.
That was what made the credit card phenomenon really work. After the cooperatives built that industry, it got demutualized, privatized, turned into this kind of rapacious and exploitative industry. But it was actually the cooperative movement that enabled that feature of capitalism to grow.
While researching his latest book, Everything for Everyone, Schneider discovered his grandfather, a "farm boy from Colorado," was the director of a large national purchasing cooperative in the hardware industry. Growing up, he knew his grandfather ran a company called Liberty Distributors; he just didn't know it was a co-op. This is a persistent problem with co-ops, Schneider says. Few people, for example, know that large companies like Land O'Lakes, ShopRite, and ACE Hardware are co-ops. The most publicized, REI, is predominantly reserved for outdoor fanatics.
Whereas the co-op model might inspire thoughts of conformity, Schneider argues that it actually promotes individuality through participation. Regional cooperatives match the environment in which they are founded and service, whereas chain stores demand subservience from customers. It might seem convenient that I can go into a Home Depot anywhere in America and know where everything is shelved, but this mindset is antithetical to the co-op model.
Liberty was all about using the cooperative model to enable local stores to be more individualistic, to actually enable them to have more control over how they branded themselves and what stock they carried. The hardware store in my town that's a member of ACE Hardware is much more tailored to the culture of the town than the Home Depot conglomerate down the road. The corporate model expects a kind of mass conformity; the cooperative model is a strategy for enabling businesses to help people be their fuller selves.
Corporate responsibility? Don’t make me laugh.
This model can help level the economic playing field in a country like America, which is suffering from staggering income inequality. While Schneider's grandfather never became super wealthy, he was actively engaged in a community in which the rewards of the profession were distributed equitably. Self-help books about economic empowerment and business success proclaim that anyone can become the next Steve Jobs or Bill Gates with a dream and drive, but Schneider recognizes such a promise as nonsense. The capitalist playing field is limited to few winners while forcing small businesses—the romantic 'Main Street' model of suburban America—to shutter their windows.
Schneider points out that even in a time of extreme party-line politics, the Main Street Employee Ownership Act, which argued for employee ownership through a cooperative model, received bipartisan support when signed into law in August 2018. While Schneider says that Republicans are more likely to work with electrical and agricultural co-ops in rural states, both parties need to better educate themselves on the history and importance of this model moving forward. Unfettered capitalism espoused by paid lobbyists is not doing the citizenry any favors.
This is especially problematic, Schneider says, during a time when so much wealth is locked into smaller technology companies that are poorly understood by government.
We have an incredibly widespread accountability problem. Our businesses, especially the dominant ones, are just not accountable the way we need them to be. We can drag them in front of Congress as many times as we want, but they're clearly on their own agenda; we need a different strategy. And another difficulty here that we're in is that we're no longer in the realm of national companies. We need governance that is transnational; we can't just rely on a hodgepodge of national regulations to deal with the emerging digital economy.
Honoring value creators is the way to move forward, according to Schneider. One thing is certain: we're currently not headed in that direction. Empowering members and consumers instead of treating them as a flock will benefit the greatest number of people. Forty years into the trickle-down experiment have shown its utter failure. When will we come to terms with this fact?
Emotional intelligence is a skill sought by many employers. Here's how to raise yours.
- Daniel Goleman's 1995 book Emotional Intelligence catapulted the term into widespread use in the business world.
- One study found that EQ (emotional intelligence) is the top predictor of performance and accounts for 58% of success across all job types.
- EQ has been found to increase annual pay by around $29,000 and be present in 90% of top performers.
The achievement is an important milestone in quantum computing, Google's scientists said.
- Sycamore is a quantum computer that Google has spent years developing.
- Like traditional computers, quantum computers produce binary code, but they do so while utilizing unique phenomena of quantum mechanics.
- It will likely be years before quantum computing has applications in everyday technology, but the recent achievement is an important proof of concept.
How quantum computers differ from traditional computers<p>Like traditional computers, quantum computers produce binary code to execute computing functions. But instead of using transistors to represent the ones and zeroes, as traditional computers do, quantum computers like Sycamore use quantum bits, or "qubits."</p><p>Qubits are extremely tiny pieces of hardware that act like subatomic particles, utilizing quantum phenomena like entanglement, superposition, and interference. Qubits can represent ones and zeroes. But thanks to superposition, qubits are also able to represent multiple states at the same time, meaning they can make calculations much faster than traditional computers. That's what helped Sycamore recently outperform a supercomputer.</p><p>Sycamore achieved "quantum supremacy," which occurs when a quantum computer can do something that a traditional computer cannot. To pass this benchmark, Google engineers pit Sycamore against the world's leading supercomputer, Summit, which is housed at Oak Ridge National Laboratory in Tennessee.</p><p>"Summit is currently the world's leading supercomputer, capable of carrying out about 200 million billion operations per second," William Oliver, a physicist at the Massachusetts Institute of Technology, wrote in a <a href="https://www.nature.com/articles/d41586-019-03173-4" target="_blank">"News and Views" piece</a> for <em>Nature</em>.</p><p>But the contest between Sycamore and Summit involved a highly specific task, one that was specifically designed to give a competitive edge to a quantum computer like Sycamore.</p>
Beating the world's leading supercomputer<p>The task involved estimating how likely it was that a processor would produce some "bitstrings" more often than others. As you continue to add information to the equation, it becomes exponentially difficult for traditional computers to conduct the calculations. (You can read more about the experiment <a href="https://ai.googleblog.com/2019/10/quantum-supremacy-using-programmable.html" target="_blank">here</a>.)</p><p>"We performed a fixed set of operations that entangles 53 qubits into a complex superposition state," Ben Chiaro, a graduate student researcher in the Martinis Group, which conducted the experiment, told <em><a href="https://www.sciencedaily.com/releases/2019/10/191023133358.htm" target="_blank">Science Daily</a></em>. "This superposition state encodes the probability distribution. For the quantum computer, preparing this superposition state is accomplished by applying a sequence of tens of control pulses to each qubit in a matter of microseconds. We can prepare and then sample from this distribution by measuring the qubits a million times in 200 seconds."</p><p>"For classical computers, it is much more difficult to compute the outcome of these operations because it requires computing the probability of being in any one of the 2^53 possible states, where the 53 comes from the number of qubits -- the exponential scaling is why people are interested in quantum computing to begin with," Brooks Foxen, another graduate student researcher in the Martinis Group, told <em>Science Daily</em>. "This is done by matrix multiplication, which is expensive for classical computers as the matrices become large."</p><p>But the specific nature of this task has led some to question the utility of quantum computers like Sycamore.</p><p>"One criticism we've heard a lot is that we cooked up this contrived benchmark problem—[Sycamore] doesn't do anything useful yet," Hartmut Neven, a Google engineering director said at a press event on Wednesday. "That's why we like to compare it to a Sputnik moment. Sputnik didn't do much either. All it did was circle Earth. Yet it was the start of the Space Age."</p>
A proof of concept for quantum computing<p>Although it could be decades until we see quantum computing powering everyday devices, Sycamore serves as a proof of concept that there exists a form of computing that has the potential to be vastly superior to traditional computing.</p><p>"This demonstration of quantum supremacy over today's leading classical algorithms on the world's fastest supercomputers is truly a remarkable achievement and a milestone for quantum computing," Oliver wrote in his piece for <em>Nature</em>. "It experimentally suggests that quantum computers represent a model of computing that is fundamentally different from that of classical computers. It also further combats criticisms about the controllability and viability of quantum computation in an extraordinarily large computational space (containing at least the 253 states used here)."</p>
A study published Friday tested how well 14 commonly available face masks blocked the emission of respiratory droplets as people were speaking.
- The study tested the efficacy of popular types of face masks, including N95 respirators, bandanas, cotton-polypropylene masks, gaiters, and others.
- The results showed that N95 respirators were most effective, while wearing a neck fleece (aka gaiter) actually produced more respiratory droplets than wearing no mask at all.
- Certain types of homemade masks seem to be effective at blocking the spread of COVID-19.
Fischer et al.<p>A smartphone camera recorded video of the participants, and a computer algorithm counted the number of droplets they emitted. To establish a control trial, the participants spoke into the box both with and without a mask. And to make sure that the droplets weren't in fact dust from the masks, the team conducted more tests by "repeatedly puffing air from a bulb through the masks."</p>
Fischer et al.<p>The results, published Friday in <a href="https://advances.sciencemag.org/content/early/2020/08/07/sciadv.abd3083" target="_blank">Science Advances</a>, showed that some masks are pretty much useless. In particular, neck fleeces (also called gaiters) actually produced more respiratory droplets compared to the control trial — likely because the fabric breaks down big droplets into smaller ones.</p><p>The top three most effective masks were N95 respirators, surgical masks, and polypropylene-cotton masks. Bandanas performed the worst, but were slightly better than wearing no mask at all.</p>
Fischer et al.<p>Research on mask efficacy is still emerging. But the new results seem to generally align with <a href="https://newsroom.wakehealth.edu/News-Releases/2020/04/Testing-Shows-Type-of-Cloth-Used-in-Homemade-Masks-Makes-a-Difference" target="_blank" rel="noopener noreferrer dofollow">prior tests</a>. For example, a study from June published in <a href="https://aip.scitation.org/doi/10.1063/5.0016018" target="_blank" rel="noopener noreferrer dofollow">Physics of Fluid</a> found that bandanas (followed by folded handkerchiefs) were least effective at blocking respiratory droplets. That same study also found, as <a href="https://newsroom.wakehealth.edu/News-Releases/2020/04/Testing-Shows-Type-of-Cloth-Used-in-Homemade-Masks-Makes-a-Difference" target="_blank" rel="noopener noreferrer dofollow">others have</a>, that masks made from multiple layers of quilter's fabric were especially effective at blocking droplets.</p><p>The researchers hope other institutions will conduct similar experiments so the public can see how well different masks can block the spread of COVID-19.</p><p style="margin-left: 20px;">"This is a very powerful visual tool to raise awareness that a very simple masks, like these homemade cotton masks, do really well to stop the majority of these respiratory droplets," Fischer told CNN. "Companies and manufacturers can set this up and test their mask designs before producing them, which would also be very useful."</p>
Sharing QAnon disinformation is harming the children devotees purport to help.
- The conspiracy theory, QAnon, is doing more harm than good in the battle to end child trafficking.
- Foster youth expert, Regan Williams, says there are 25-29k missing children every year, not 800k, as marketed by QAnon.
- Real ways to help abused children include donating to nonprofits, taking educational workshops, and becoming a foster parent.
Real ways you can help stop child trafficking<span style="display:block;position:relative;padding-top:56.25%;" class="rm-shortcode" data-rm-shortcode-id="21fc2dc85391501eec28c4bf46d7db15"><iframe type="lazy-iframe" data-runner-src="https://www.youtube.com/embed/AXL0q9jNZGU?rel=0" width="100%" height="auto" frameborder="0" scrolling="no" style="position:absolute;top:0;left:0;width:100%;height:100%;"></iframe></span><p>Williams is the founder and CEO of <a href="http://www.seenandheard.org/" target="_blank">Seen and Heard</a>, a Los Angeles-based nonprofit that helps foster youth develop character through the performing arts. She's been involved with foster youth for years; I <a href="https://bigthink.com/politics-current-affairs/child-sex-trafficking" target="_self">wrote about her work</a> in child trafficking just over a year ago. Tragically, since that time, the situation for these children has only gotten worse, in large part because of QAnon.</p><p>Williams says child trafficking is an easy cause to rally people together. Fear is also a powerful unifying force, one that QAnon believers are already primed for via the news they consume. Almost every parent cares about their children, making them the ideal target to solidify groups. </p><p>The real problem, she says, is that the youth she works with are falling for these conspiracy theories. Trauma is a particularly powerful tool for indoctrination. If you're a teenager that's been abducted or abused, your trust level is already extremely low. Then you read about a global cabal of powerful men (and a few women) secretly abusing children, and the narrative seems ready-made for your personal history.</p><p>When Williams tried to "lovingly and kindly correct" the youth she was working with after learning about the Wayfair conspiracy, the girls' response was, "well, who owns the media?" </p><p style="margin-left: 20px;">"She goes from this small little thing to a QAnon talking point. I've been thinking about why she would believe such a preposterous idea—and there are others; it's not just one student, and they're in in deep. I think that when something horrific happens to you as a child, it's a lot easier to distance yourself from the immediate reality that it was an uncle or a parent or a sibling that hurt you. By detaching from that immediate person, they project it onto Bill Gates or Chrissy Teigen. Then it's not so personal, it's global." </p>
A man wear a shirt with the words Q Anon as he attends a rally for President Donald Trump at the Make America Great Again Rally being held in the Florida State Fair Grounds Expo Hall on July 31, 2018 in Tampa, Florida.
Photo by Joe Raedle/Getty Images<p>As Williams mentions, there are over 30,000 kids in foster care in the Los Angeles area alone. It's easy to fall through the cracks. The systems in place aren't perfect; they're certainly underfunded. When you're in a system trying to support you yet isn't capable of doing so, viewing the world as imperfect, and even harmful, becomes the lens through which you see reality. Again, this makes for a perfect indoctrination tool.</p><p>One popular QAnon talking point is that 800,000 children are missing. As Williams says, child trafficking experts "don't buy this for a minute." The number makes for a good meme but a poor representation of the problem. </p><p>To source better data, Williams turns to the <a href="https://www.missingkids.org/" target="_blank">National Center for Missing and Exploited Children</a> (NCMEC) and the <a href="https://www.fbi.gov/services/cjis/ncic" target="_blank" rel="noopener noreferrer dofollow">National Crime Information Center</a> (NCIC). An important factor when reading data: if a teacher <em>and</em> a caregiver report a missing child to NCIC, that counts as two children, not one, which accounts for some of the fluctuations in numbers. In total, between 25,000 and 29,000 kids go missing every year. Importantly, 94 percent of those children are recovered within four to six weeks. </p><p style="margin-left: 20px;">"They're not documenting the recovery rate. It's not like these numbers are perpetually hanging out there. So this 800,000 number is just ludicrous." </p><p>Williams compares what's going on to Black Lives Matter. Blacking out your Instagram profile picture is performative. It signals that you actually care, which is great, but if you're not supporting Black-owned businesses, for example, there are no teeth to your activism. </p><p>Of course, blacking out your profile doesn't cause the real-world harm the QAnon virus does. Sharing misinformation is ultimately harmful to the children in need of help. Williams offers the resources below—ranging from donations to nonprofits to educational trainings to becoming a foster parent—for people that actually want to do something to help victims of sexual and physical abuse. They might not make a great Twitter meme, but in the actual world, this support makes all the difference. </p><p><strong>To report abuse/neglect, call the child abuse hotline: 800.540.4000 (LA county) / 800.422.4453 (National)</strong></p><ul><li>Support anti-trafficking organizations by donating to <a rel="noopener noreferrer dofollow" href="http://savinginnocence.org/" target="_blank">Saving Innocence</a>, which runs the continuum of care from rescue to recovery, <a href="http://gozoe.org/" target="_blank" rel="noopener noreferrer dofollow">Zoe</a>, a reputable faith-based organization, and <a rel="noopener noreferrer dofollow" href="https://withtwowings.org/" target="_blank">Two Wings</a>, which helps to rehabilitate female survivors</li><li><a rel="noopener noreferrer dofollow" href="http://www.nolabrantleyspeaks.org/" target="_blank">Nola Brantley</a> offers in-person and online trainings to help combat the commercial sexual exploitation of children</li><li><a rel="noopener noreferrer dofollow" href="http://instagram.com/imrebeccabender" target="_blank">Rebecca Bender</a> is a trafficking survivor that runs "Myth Busters," which combats conspiracy theory disinformation</li><li>The <a href="https://www.instagram.com/missingkids/" target="_blank" rel="noopener noreferrer dofollow">National Center</a> of Missing and Exploited Children</li><li>Operation <a href="https://www.instagram.com/ourrescue/" target="_blank" rel="noopener noreferrer dofollow">Underground Railroad </a></li><li><a href="https://www.instagram.com/defendinnocence/" target="_blank" rel="noopener noreferrer dofollow">Defend Innocence</a> offers tips for parents and caregivers to keep kids safe</li></ul><p><span></span>--</p><p><em>Stay in touch with Derek on <a href="http://www.twitter.com/derekberes" target="_blank">Twitter</a>, <a href="https://www.facebook.com/DerekBeresdotcom" target="_blank">Facebook</a> and <a href="https://derekberes.substack.com/" target="_blank">Substack</a>. His next book is</em> "<em>Hero's Dose: The Case For Psychedelics in Ritual and Therapy."</em></p>