Creating wealth, building democracy: What does it take

Posted Sunday, March 15, 2015 1:24 pm

Building wealth in our community happens in part through the creation of jobs.

However, the number of jobs paying $15 an hour or more, is decreasing. According to a 2012 report by the National Employment Law Project, 58 percent of jobs created in the U.S. between 2010 and 2012 were low-wage positions paying less than $13.38 per hour, with the two largest sectors for low wage job growth being foodservice and retail. Sadly, the majority of jobs lost between 2008 and 2010 were higher wage positions, meaning the national economy has been replacing higher paying jobs with lower paying jobs.

The number of workers wanting to work full time but only finding part-time jobs, with no benefits and unpredictable hours, stood at 6.8 million as of November 2014, up significantly from the 4.3 million part-time workers in 2007. For many, part-time employment means that weekly wages will not pay the rent or put food on the table and they will need to apply for public assistance. Bennington is fortunate to have a rich work history including a strong manufacturing base with higher wages. The latest figures from the Vermont Department of Labor indicate that 27 percent of jobs in our community are in health care and social services, 15 percent in manufacturing, 15 percent in retail, and 14 percent in education. Based on DOL projections, the health care and social services sector will continue to lead job growth.

It is easy to get stuck on how we think about job creation. Often we hear that our community simply has to offer tax incentives to encourage businesses to move here and create jobs. What we know is that businesses lured in with financial promises can as easily move out when the economic climate changes. Instead, we need more jobs that are created by local people, building on our own assets, and motivated by a desire to strengthen our community. Many have found that owning a business provides a level of autonomy that can be rewarding and sustainable. Bennington, with its long history of entrepreneurship, is poised for this change. Developing entrepreneurial support systems and leveraging local assets is one part of this change. Building an economic model that increases the overall wealth of the community and creates a more democratic workplace is another goal for many of us.

In Bennington a group interested in these goals has been meeting since last summer. As part of our research into increasing entrepreneurship, wealth and democracy, we have been looking at worker-owner and consumer-owner cooperative businesses. What we have discovered is that there are thousands of companies working to create what is known as the social and solidarity economy. When workers are also owners they build up wealth over time, and they follow democratic practices that treat employees as equal participants in meaningful work. Building those democratic practices isn't easy, but over time it can transform the community around the business as the workforce stabilizes and worker-owners learn to participate and be heard.

This growing movement in the U.S. is building transformative economic practices at the grassroots level. Valuing community, cooperation, environmental sustainability and wellbeing are at the heart of this model. In the U.S., a number of successful worker-owned cooperative models exist and, closer to home, cooperatives are being formed in Brattleboro, Boston, and Greenfield, Mass. What could this look like in Bennington? How do we bridge the gap for those who want full-time work but are unable to do so because of current economic conditions? How do we build entrepreneurial support systems, wealth and democracy in our community? Join us in exploring these questions and others by contacting us at CreatingWealthandDemocracy@gmail.

This series of articles has been written by Poverty Workgroup members. The authors include Kiaran Honderich of Bennington; Jeannie Jenkins of Bennington; Mickey McGlasson of Bennington; Denise Main of Bennington; Dick Bower of Bennington; Charlie Gingo of Bennington; Mary McGuinness of Bennington; Sue Andrews of North Bennington; Joy Kitchell of North Bennington; and Chris Bongartz of Manchester.