Was Hegel right? Capitalism and the Creative class

[RHARDBC]

Hi, guys. My name is Roman Skliarov. I'm from Kyiv, Ukraine. I'm a founder of the Creator Society Movement. I want to offer you have a look at the theory of where we, the economy and the world can move, given the characteristics of the post-industrial, information age. Criticism is welcome

Everything that exists has a germ of its own destruction in its very birth (Eastern wisdom)
Summary:

• Capitalism is not good and not bad, it is just a link in the chain of economic development.
• Capitalism as an intermediate link between economic formations within itself brings the reason to move to another formation.
• The success of capitalism accelerates its "final" (move to other formation), but not a crisis, as Marx thought.
• The next formation after capitalism is the cooperative economy, not the communism, as Marx thought.
• The driving force of the transition is the creative class, created by capitalism itself, and not the working class, as Marx thought.

Full statement:

1. How is the development performed by Hegel

• There is a certain phenomenon - thesis.
• Thesis’ activities generates its opposite - antithesis.
• The struggle of thesis and antithesis.
• Solution of this struggle is in the new phenomenon - synthesis of thesis and antithesis, which combines the properties of both.
• The synthesis becomes the new thesis, and the cycle begins again.

2. Thesis: perfect competition and individual producers

• A new branch begins with the perfect competition of individual producers.
• Each producer is both the worker and the owner of his business.
• Production takes place without the use of hired labor.
• Individual producer is not a "capitalist" because he receives income only from his own labor, not the capital.

3. Antithesis: Successful producers hire workers and become "capitalists"

• More talented individual producers displace competitors and hire labor.
• Prior to the stage of hiring workers, individual producer does not know what a "capital" is.
• "Capitalist" begins to generate income not only from his own work, but also from the work of others on his "capital".
• Individual worker-owner forks on the individual owner and the collective worker within the same firm.

4. The struggle of thesis and antithesis: "holy war" of trade unions and shareholders
Trade unions:

• Hatred of the "capitalists" and the desire for revenge for the exploitation.
• Objective: to get more "freebies" of the social package, even at the expense of the company.
• Opposition to innovation and increased productivity.
• In case of victory: unprofitable business and society of dependents.

Capitalists:

• Neglecting to workers and the desire to use them.
• Objective: to use cheap labor to maximize profits.
• Opposition to improve working conditions and social security.
• In case of victory: increase of wealth inequality and social protests.

5. Institutional framework for the synthesis: successes of postindustrial capitalism
• Capitalism meets the basic needs of the people (physiological and safety)
• Capitalism creates conditions for the personal development of the general population:

1. The quality of education. Capitalism is the "customer" of the highly educated workforce, which service high-tech means of production.
2. Availability of information. Capitalism has started mass production of Internet, television, radio, paving the way for self-education.
3. Development of сommunications. Mass production of vehicles and devices to communicate at a distance promotes personal development.

6. Maslow Pyramid: capitalism offers not enough motivation for the creative class
Intangible needs are not met because:

• Alienation from the profits and overall success of the company (belonging to a company);
• Non-involvement in the decision-making process (belonging to a company, the need for respect and self-realization).

Result: The creative class, working in corporations, does not consider these corporations as its own, do not identify with corporations’ successes and sees them as antagonists.

7. Definition of the Creative class

Creative class is part of post-industrial society as its intellectual and cultural level formed on the basis of success of capitalism in the fields of education, information technologies and communications, but it cannot fully succeed in capitalist system due to lack of motivation of higher level: ability to satisfy needs of belonging, respect and creativity within capitalist corporations.

• The more capitalism reaches success, the more growing the share of the creative class, which becomes a "foreign body" for capitalism and makes new demands to the economic system.
• Reaching the critical number of the creative class (which previously was the proletariat) leads to a qualitative change in the economic system.

8. In order to meet the higher level needs the ownership is needed

• The alienation of the worker from the company overcome by giving him the ownership of it.
• Worker-owner, along with the ownership, gets a voting right in issues of the company’s activities, a voting right to elect the top-management of the company and has a guaranteed share of the profits.
• The voting right on the company's activity is the right to self-realization, that is creativity. Everyone can express his opinion and offer new ideas as an equal partner.
• The work in such an atmosphere becomes interesting, it starts to bring pleasure, and motivation is restored.

9. The worker-owner is a synthesis of thesis and antithesis of capitalism

• Confrontation of collective employee and individual owner-shareholder ends in the face of the collective worker-owner of the company.
• Worker-owner cannot complain about the owner, because he is the owner, and cannot exploit workers, because he is the worker.
• Absolute power of the individual owner is distributed to the members having equal rights.
• Instead of economic authoritarianism comes economic democracy.

10. Example: Mondragon Corporation – the world leader of cooperation (MONDRAGON Corporation)

• More than 12.5 billion. Euros gross income;
• Offices in 41 countries;
• Sales in more than 150 countries;
• 15 technology centers;
• 74 thousand workers (84% are the members and real owners);
• 103 cooperatives;
• Co-operative Bank;
• University of Mondragon: 11 master's and 3 doctoral programs.

Video of how it works:
Read more here: Manifesto of the Creator Society Movement

 

[georgephillip]

Hi, guys. My name is Roman Skliarov. I'm from Kyiv, Ukraine. I'm a founder of the Creator Society Movement. I want to offer you have a look at the theory of where we, the economy and the world can move, given the characteristics of the post-industrial, information age. Criticism is welcome

Welcome to the asylum, Roman.
You've given us a lot to consider with your excellent initial post.
Please suggest a starting point for discussion, especially for those of us who haven't read (or understood) Hegel.
Thanks again for your interest in USMB.

 

[RHARDBC]

Hi, guys. My name is Roman Skliarov. I'm from Kyiv, Ukraine. I'm a founder of the Creator Society Movement. I want to offer you have a look at the theory of where we, the economy and the world can move, given the characteristics of the post-industrial, information age. Criticism is welcome

Welcome to the asylum, Roman.
You've given us a lot to consider with your excellent initial post.
Please suggest a starting point for discussion, especially for those of us who haven't read (or understood) Hegel.
Thanks again for your interest in USMB.

Thanks! There is no need to read Hegel's books completely, 'cause I tried to briefly describe his views about mechanism of development in p.1 "How is the development performed by Hegel".

A starting point could be about p. 6 "Maslow Pyramid: capitalism offers not enough motivation for the creative class". Since I live in Ukraine, I do not fully know about the corporate culture of large corporations in the US. But from what I've read and watched, I concluded that the corporations in the United States (ant the West at all) do not allow employees to satisfy higher needs of Maslow's pyramyd at the workplace. And this built my theory, because the creative class needs more than just a money as a motivation at the workplace, it wants self-realization. So it's interesting, am I right about it?

 

[regent]

Perhaps a difference, is that change in a democratic nation is different than change in a dictatorship. Our government responded to the pressure of the people, and their vote, and changed capitalism, removing some of the problems Marx saw. Instead of changing to communism, as Marx predicted, the change was to capitalism, to a regulated capitalism. Another factor is that it seemed the American people recognized the value of capitalism and were reluctant to abolish it, they wanted it to work.
Bismarck in 1890 did the same thing in Germany, instead of suppressing the people he brought in socialized medicine and some of the lure of communism was gone. The best period of changing the USA's economic system was in the Great Depression, and FDR's New Deal, destroyed the need for a new economic system.

 

[RHARDBC]

Perhaps a difference, is that change in a democratic nation is different than change in a dictatorship. Our government responded to the pressure of the people, and their vote, and changed capitalism, removing some of the problems Marx saw. Instead of changing to communism, as Marx predicted, the change was to capitalism, to a regulated capitalism. Another factor is that it seemed the American people recognized the value of capitalism and were reluctant to abolish it, they wanted it to work.
Bismarck in 1890 did the same thing in Germany, instead of suppressing the people he brought in socialized medicine and some of the lure of communism was gone. The best period of changing the USA's economic system was in the Great Depression, and FDR's New Deal, destroyed the need for a new economic system.

government regulation can actually alleviate some of the problems of capitalism, but it is rather the struggle with the result than the cause of these problems.
but the question is not so much about the problems as the successes of capitalism. Capitalism is successful, and that is its biggest problem. People earn money, develop, and want to fulfill themselves at work, but in capitalist corporations this is difficult, because if you are not the owner, you are removed from the decision-making process, and motivation drops. This is all about motivation and Maslow's pyramid of needs.
So in co-op economy there is a free market also, but employees are owners and they have instruments to realize themeselves at work and satisfy their needs of belonging to a company, respect and creatiity.

 

[regent]

Be nice if a job satisfied all one's needs, but they don't. Perhaps our we meet our needs in other areas that a job, sports, hobbies, etc. For many a job's meets basic needs and then we look for other areas to meet our needs, and that creates more industry.

 

[RHARDBC]

Be nice if a job satisfied all one's needs, but they don't. Perhaps our we meet our needs in other areas that a job, sports, hobbies, etc. For many a job's meets basic needs and then we look for other areas to meet our needs, and that creates more industry.

So it is, but the man spends most of his life at work, and it should not be the waste of time. Thats why there could be a search of business model, that can meet higher level needs, and co-op business model have such instruments and could be such model

 

[georgephillip]

And this built my theory, because the creative class needs more than just a money as a motivation at the workplace, it wants self-realization. So it's interesting, am I right about it?

I believe you are correct if you are saying western corporations embrace creative thinking only when it improves corporate profits. I'm probably not the most informed opinion on this matter since my own experience in the work place was limited to entry-level blue collar type labor; however, even I know there are many brilliant highly creative executives in the corporate sphere whose education has been entirely shaped in Business Schools, and they lack any knowledge of morality or ethical behavior in the market place. Their golden rule is simply those with the gold make the rule.

 

[Michelle420]

Hi, guys. My name is Roman Skliarov. I'm from Kyiv, Ukraine. I'm a founder of the Creator Society Movement. I want to offer you have a look at the theory of where we, the economy and the world can move, given the characteristics of the post-industrial, information age. Criticism is welcome

Everything that exists has a germ of its own destruction in its very birth (Eastern wisdom)
Summary:

• Capitalism is not good and not bad, it is just a link in the chain of economic development.
• Capitalism as an intermediate link between economic formations within itself brings the reason to move to another formation.
• The success of capitalism accelerates its "final" (move to other formation), but not a crisis, as Marx thought.
• The next formation after capitalism is the cooperative economy, not the communism, as Marx thought.
• The driving force of the transition is the creative class, created by capitalism itself, and not the working class, as Marx thought.

Full statement:

1. How is the development performed by Hegel

• There is a certain phenomenon - thesis.
• Thesis’ activities generates its opposite - antithesis.
• The struggle of thesis and antithesis.
• Solution of this struggle is in the new phenomenon - synthesis of thesis and antithesis, which combines the properties of both.
• The synthesis becomes the new thesis, and the cycle begins again.

2. Thesis: perfect competition and individual producers

• A new branch begins with the perfect competition of individual producers.
• Each producer is both the worker and the owner of his business.
• Production takes place without the use of hired labor.
• Individual producer is not a "capitalist" because he receives income only from his own labor, not the capital.

3. Antithesis: Successful producers hire workers and become "capitalists"

• More talented individual producers displace competitors and hire labor.
• Prior to the stage of hiring workers, individual producer does not know what a "capital" is.
• "Capitalist" begins to generate income not only from his own work, but also from the work of others on his "capital".
• Individual worker-owner forks on the individual owner and the collective worker within the same firm.

4. The struggle of thesis and antithesis: "holy war" of trade unions and shareholders
Trade unions:

• Hatred of the "capitalists" and the desire for revenge for the exploitation.
• Objective: to get more "freebies" of the social package, even at the expense of the company.
• Opposition to innovation and increased productivity.
• In case of victory: unprofitable business and society of dependents.

Capitalists:

• Neglecting to workers and the desire to use them.
• Objective: to use cheap labor to maximize profits.
• Opposition to improve working conditions and social security.
• In case of victory: increase of wealth inequality and social protests.

5. Institutional framework for the synthesis: successes of postindustrial capitalism
• Capitalism meets the basic needs of the people (physiological and safety)
• Capitalism creates conditions for the personal development of the general population:

1. The quality of education. Capitalism is the "customer" of the highly educated workforce, which service high-tech means of production.
2. Availability of information. Capitalism has started mass production of Internet, television, radio, paving the way for self-education.
3. Development of сommunications. Mass production of vehicles and devices to communicate at a distance promotes personal development.

6. Maslow Pyramid: capitalism offers not enough motivation for the creative class
Intangible needs are not met because:

• Alienation from the profits and overall success of the company (belonging to a company);
• Non-involvement in the decision-making process (belonging to a company, the need for respect and self-realization).

Result: The creative class, working in corporations, does not consider these corporations as its own, do not identify with corporations’ successes and sees them as antagonists.

7. Definition of the Creative class

Creative class is part of post-industrial society as its intellectual and cultural level formed on the basis of success of capitalism in the fields of education, information technologies and communications, but it cannot fully succeed in capitalist system due to lack of motivation of higher level: ability to satisfy needs of belonging, respect and creativity within capitalist corporations.

• The more capitalism reaches success, the more growing the share of the creative class, which becomes a "foreign body" for capitalism and makes new demands to the economic system.
• Reaching the critical number of the creative class (which previously was the proletariat) leads to a qualitative change in the economic system.

8. In order to meet the higher level needs the ownership is needed

• The alienation of the worker from the company overcome by giving him the ownership of it.
• Worker-owner, along with the ownership, gets a voting right in issues of the company’s activities, a voting right to elect the top-management of the company and has a guaranteed share of the profits.
• The voting right on the company's activity is the right to self-realization, that is creativity. Everyone can express his opinion and offer new ideas as an equal partner.
• The work in such an atmosphere becomes interesting, it starts to bring pleasure, and motivation is restored.

9. The worker-owner is a synthesis of thesis and antithesis of capitalism

• Confrontation of collective employee and individual owner-shareholder ends in the face of the collective worker-owner of the company.
• Worker-owner cannot complain about the owner, because he is the owner, and cannot exploit workers, because he is the worker.
• Absolute power of the individual owner is distributed to the members having equal rights.
• Instead of economic authoritarianism comes economic democracy.

10. Example: Mondragon Corporation – the world leader of cooperation (MONDRAGON Corporation)

• More than 12.5 billion. Euros gross income;
• Offices in 41 countries;
• Sales in more than 150 countries;
• 15 technology centers;
• 74 thousand workers (84% are the members and real owners);
• 103 cooperatives;
• Co-operative Bank;
• University of Mondragon: 11 master's and 3 doctoral programs.

Video of how it works:
Read more here: Manifesto of the Creator Society Movement

I like it so far !

 

[RHARDBC]

And this built my theory, because the creative class needs more than just a money as a motivation at the workplace, it wants self-realization. So it's interesting, am I right about it?

I believe you are correct if you are saying western corporations embrace creative thinking only when it improves corporate profits. I'm probably not the most informed opinion on this matter since my own experience in the work place was limited to entry-level blue collar type labor; however, even I know there are many brilliant highly creative executives in the corporate sphere whose education has been entirely shaped in Business Schools, and they lack any knowledge of morality or ethical behavior in the market place. Their golden rule is simply those with the gold make the rule.

Well, yes, in different system those 'brilliant highly creative executives' could be different, and maybe they could be more happy if they had an opportunity to realize their creative potential in constructive way. But, unfortunately, a lot of them adapt to the system (corporate culture) and change their principles. Others simply mechanically perform their jobs, losing interest in it.
I have some hope for the movements like Occopy Wall Street. As I see, it was the first time, when the creative class came to the political scene and declared the political demands. It was the creative class on Occopy Wall Street, isn't it?

 

[georgephillip]

I have some hope for the movements like Occopy Wall Street. As I see, it was the first time, when the creative class came to the political scene and declared the political demands. It was the creative class on Occopy Wall Street, isn't it?

There were certainly some brilliant and creative people in Occupy; however, they didn't seem to have much use for politics, at least in the US. They seemed to go to great lengths to avoid making political demands upon the system (except for lifetime free rent) and consequently couldn't generate any long term support from the US middle class. Occupy did manage to bring the 1% versus the 99% into mainstream discussion, and I think they deserve a lot of credit for that.
Occupy movement - Wikipedia the free encyclopedia

 

[RHARDBC]

I have some hope for the movements like Occopy Wall Street. As I see, it was the first time, when the creative class came to the political scene and declared the political demands. It was the creative class on Occopy Wall Street, isn't it?

There were certainly some brilliant and creative people in Occupy; however, they didn't seem to have much use for politics, at least in the US. They seemed to go to great lengths to avoid making political demands upon the system (except for lifetime free rent) and consequently couldn't generate any long term support from the US middle class. Occupy did manage to bring the 1% versus the 99% into mainstream discussion, and I think they deserve a lot of credit for that.
Occupy movement - Wikipedia the free encyclopedia

Thanks for information. Whether there is some kind of web discussion forum of Occupy movement to share the ideas? I've found a lot of Occupy web-sites, but they have no a message board or smth. Only this, but I cannot add a thread there (403 error)

 

[georgephillip]

Thanks for information. Whether there is some kind of web discussion forum of Occupy movement to share the ideas? I've found a lot of Occupy web-sites, but they have no a message board or smth. Only this, but I cannot add a thread there (403 error)

You might try Occupy Oakland.
The northern California city of Oakland saw some of the most violent events during the US Occupy movement. Oakland itself is a hard core blue collar community with a long history of labor and racial unrest. It is also located very close to the University of California, Berkeley campus, which is one of the most progressive institutions of higher learning in the world.
Forum - Occupy Oakland

 

[EdwardBaiamonte]

Hi, guys. My name is Roman Skliarov. I'm from Kyiv, Ukraine. I'm a founder of the Creator Society Movement. I want to offer you have a look at the theory of where we, the economy and the world can move, given the characteristics of the post-industrial, information age. Criticism is welcome

Everything that exists has a germ of its own destruction in its very birth (Eastern wisdom)
Summary:

• Capitalism is not good and not bad, it is just a link in the chain of economic development.
• Capitalism as an intermediate link between economic formations within itself brings the reason to move to another formation.
• The success of capitalism accelerates its "final" (move to other formation), but not a crisis, as Marx thought.
• The next formation after capitalism is the cooperative economy, not the communism, as Marx thought.
• The driving force of the transition is the creative class, created by capitalism itself, and not the working class, as Marx thought.

Full statement:

1. How is the development performed by Hegel

• There is a certain phenomenon - thesis.
• Thesis’ activities generates its opposite - antithesis.
• The struggle of thesis and antithesis.
• Solution of this struggle is in the new phenomenon - synthesis of thesis and antithesis, which combines the properties of both.
• The synthesis becomes the new thesis, and the cycle begins again.

2. Thesis: perfect competition and individual producers

• A new branch begins with the perfect competition of individual producers.
• Each producer is both the worker and the owner of his business.
• Production takes place without the use of hired labor.
• Individual producer is not a "capitalist" because he receives income only from his own labor, not the capital.

3. Antithesis: Successful producers hire workers and become "capitalists"

• More talented individual producers displace competitors and hire labor.
• Prior to the stage of hiring workers, individual producer does not know what a "capital" is.
• "Capitalist" begins to generate income not only from his own work, but also from the work of others on his "capital".
• Individual worker-owner forks on the individual owner and the collective worker within the same firm.

4. The struggle of thesis and antithesis: "holy war" of trade unions and shareholders
Trade unions:

• Hatred of the "capitalists" and the desire for revenge for the exploitation.
• Objective: to get more "freebies" of the social package, even at the expense of the company.
• Opposition to innovation and increased productivity.
• In case of victory: unprofitable business and society of dependents.

Capitalists:

• Neglecting to workers and the desire to use them.
• Objective: to use cheap labor to maximize profits.
• Opposition to improve working conditions and social security.
• In case of victory: increase of wealth inequality and social protests.

5. Institutional framework for the synthesis: successes of postindustrial capitalism
• Capitalism meets the basic needs of the people (physiological and safety)
• Capitalism creates conditions for the personal development of the general population:

1. The quality of education. Capitalism is the "customer" of the highly educated workforce, which service high-tech means of production.
2. Availability of information. Capitalism has started mass production of Internet, television, radio, paving the way for self-education.
3. Development of сommunications. Mass production of vehicles and devices to communicate at a distance promotes personal development.

6. Maslow Pyramid: capitalism offers not enough motivation for the creative class
Intangible needs are not met because:

• Alienation from the profits and overall success of the company (belonging to a company);
• Non-involvement in the decision-making process (belonging to a company, the need for respect and self-realization).

Result: The creative class, working in corporations, does not consider these corporations as its own, do not identify with corporations’ successes and sees them as antagonists.

7. Definition of the Creative class

Creative class is part of post-industrial society as its intellectual and cultural level formed on the basis of success of capitalism in the fields of education, information technologies and communications, but it cannot fully succeed in capitalist system due to lack of motivation of higher level: ability to satisfy needs of belonging, respect and creativity within capitalist corporations.

• The more capitalism reaches success, the more growing the share of the creative class, which becomes a "foreign body" for capitalism and makes new demands to the economic system.
• Reaching the critical number of the creative class (which previously was the proletariat) leads to a qualitative change in the economic system.

8. In order to meet the higher level needs the ownership is needed

• The alienation of the worker from the company overcome by giving him the ownership of it.
• Worker-owner, along with the ownership, gets a voting right in issues of the company’s activities, a voting right to elect the top-management of the company and has a guaranteed share of the profits.
• The voting right on the company's activity is the right to self-realization, that is creativity. Everyone can express his opinion and offer new ideas as an equal partner.
• The work in such an atmosphere becomes interesting, it starts to bring pleasure, and motivation is restored.

9. The worker-owner is a synthesis of thesis and antithesis of capitalism

• Confrontation of collective employee and individual owner-shareholder ends in the face of the collective worker-owner of the company.
• Worker-owner cannot complain about the owner, because he is the owner, and cannot exploit workers, because he is the worker.
• Absolute power of the individual owner is distributed to the members having equal rights.
• Instead of economic authoritarianism comes economic democracy.

10. Example: Mondragon Corporation – the world leader of cooperation (MONDRAGON Corporation)

• More than 12.5 billion. Euros gross income;
• Offices in 41 countries;
• Sales in more than 150 countries;
• 15 technology centers;
• 74 thousand workers (84% are the members and real owners);
• 103 cooperatives;
• Co-operative Bank;
• University of Mondragon: 11 master's and 3 doctoral programs.

Video of how it works:
Read more here: Manifesto of the Creator Society Movement

Mondragon never expanded because it is a failed concept.

 

[georgephillip]

Mondragon never expanded because it is a failed concept.

"MONDRAGON is one of the leading Spanish business groups, integrated by autonomous and independent cooperatives with production subsidiaries and corporate offices in 41 countries and sales in more than 150."
You're confusing Mondragon with Lehman Brothers.
MONDRAGON Corporation

 

[EdwardBaiamonte]

You're confusing Mondragon with Lehman Brothers.
MONDRAGON Corporation

On 16 October 2013, Fagor/Mondragon filed for bankruptcy under Spanish law in order to renegotiate €1,1 billion of debt, after suffering heavy losses during theeurocrisis and as a consequence of poor financial management, putting 5,600 employees at risk of losing their jobs.[13] This was followed by the bankruptcy of the whole Fagor group on 6 November 2013.[14] On July 2013, Fagor was bought by Catalan company Cata for the price of €42.5 milion. Cata pledged to create 705 direct jobs in the Basque Country as well as ensuring the continuity of the brand names Fagor, Edesa, Aspes and Splendid. [15]

 

[georgephillip]

You're confusing Mondragon with Lehman Brothers.
MONDRAGON Corporation

On 16 October 2013, Fagor/Mondragon filed for bankruptcy under Spanish law in order to renegotiate €1,1 billion of debt, after suffering heavy losses during theeurocrisis and as a consequence of poor financial management, putting 5,600 employees at risk of losing their jobs.[13] This was followed by the bankruptcy of the whole Fagor group on 6 November 2013.[14] On July 2013, Fagor was bought by Catalan company Cata for the price of €42.5 milion. Cata pledged to create 705 direct jobs in the Basque Country as well as ensuring the continuity of the brand names Fagor, Edesa, Aspes and Splendid. [15]

It's comforting to know you aren't getting any smarter.
"Annual Report offers an overall view of the MONDRAGON Corporation, by presenting the Corporation’s financial statements and trading account for year-end 2013, which will be accompanied by those for the prior year, in order to effect a year-on-year comparison.

"Several cooperatives closed down in 2013 (including Fagor Electrodomésticos, as a result of its bankruptcy situation), and are therefore not included in the 2013 accounts.

"As the relative weighting of these cooperatives as compared to MONDRAGON’s assets as a whole in 2012 amounted to 14%, and they represented 8% of MONDRAGON’s income, we have decided to exclude them from the 2012 accounts for reasons of uniformity.

"The information presented here refers to the integrated Balance Sheet for all the Corporation’s businesses, together with the Added Value they generated over the last two years, after exclusion of crossed internal balances and transactions."

Equity MONDRAGON Corporation

 

[EdwardBaiamonte]

You're confusing Mondragon with Lehman Brothers.
MONDRAGON Corporation

On 16 October 2013, Fagor/Mondragon filed for bankruptcy under Spanish law in order to renegotiate €1,1 billion of debt, after suffering heavy losses during theeurocrisis and as a consequence of poor financial management, putting 5,600 employees at risk of losing their jobs.[13] This was followed by the bankruptcy of the whole Fagor group on 6 November 2013.[14] On July 2013, Fagor was bought by Catalan company Cata for the price of €42.5 milion. Cata pledged to create 705 direct jobs in the Basque Country as well as ensuring the continuity of the brand names Fagor, Edesa, Aspes and Splendid. [15]

It's comforting to know you aren't getting any smarter.
"Annual Report offers an overall view of the MONDRAGON Corporation, by presenting the Corporation’s financial statements and trading account for year-end 2013, which will be accompanied by those for the prior year, in order to effect a year-on-year comparison.

"Several cooperatives closed down in 2013 (including Fagor Electrodomésticos, as a result of its bankruptcy situation), and are therefore not included in the 2013 accounts.

"As the relative weighting of these cooperatives as compared to MONDRAGON’s assets as a whole in 2012 amounted to 14%, and they represented 8% of MONDRAGON’s income, we have decided to exclude them from the 2012 accounts for reasons of uniformity.

"The information presented here refers to the integrated Balance Sheet for all the Corporation’s businesses, together with the Added Value they generated over the last two years, after exclusion of crossed internal balances and transactions."

Equity MONDRAGON Corporation

dear, why did Fagor and Lehman go bankrupt?

 

[RHARDBC]

You're confusing Mondragon with Lehman Brothers.
MONDRAGON Corporation

On 16 October 2013, Fagor/Mondragon filed for bankruptcy under Spanish law in order to renegotiate €1,1 billion of debt, after suffering heavy losses during theeurocrisis and as a consequence of poor financial management, putting 5,600 employees at risk of losing their jobs.[13] This was followed by the bankruptcy of the whole Fagor group on 6 November 2013.[14] On July 2013, Fagor was bought by Catalan company Cata for the price of €42.5 milion. Cata pledged to create 705 direct jobs in the Basque Country as well as ensuring the continuity of the brand names Fagor, Edesa, Aspes and Splendid. [15]

It's comforting to know you aren't getting any smarter.
"Annual Report offers an overall view of the MONDRAGON Corporation, by presenting the Corporation’s financial statements and trading account for year-end 2013, which will be accompanied by those for the prior year, in order to effect a year-on-year comparison.

"Several cooperatives closed down in 2013 (including Fagor Electrodomésticos, as a result of its bankruptcy situation), and are therefore not included in the 2013 accounts.

"As the relative weighting of these cooperatives as compared to MONDRAGON’s assets as a whole in 2012 amounted to 14%, and they represented 8% of MONDRAGON’s income, we have decided to exclude them from the 2012 accounts for reasons of uniformity.

"The information presented here refers to the integrated Balance Sheet for all the Corporation’s businesses, together with the Added Value they generated over the last two years, after exclusion of crossed internal balances and transactions."

Equity MONDRAGON Corporation

dear, why did Fagor and Lehman go bankrupt?

because it's a business.

 

[EdwardBaiamonte]

dear, why did Fagor and Lehman go bankrupt?

because it's a business.[/QUOTE]

but its a cooperative business and cooperative businesses are supposed to be better because.... they cooperate