The Meaning of Social Ownership, the Priority of Cooperativism, and the Unpleasant Need for Private Shareholding: A Reply to Claassen

This paper defends the model of Plural Cooperativism against criticism. Plural Cooperativism is a society-wide economic system of cooperative ownership that allows for limited private shareholding, counterbalanced by public shareholding and a more democratic reallocation of control rights, while universal inheritances enable broad-based investment in cooperatives. In response to Rutger Claassen’s critique, the paper clarifies the normative foundations of social ownership and argues that cooperatives can serve a wide range of values beyond workplace democracy, especially when a public shareholder complements them. It further defends the focus on cooperatives against Claassen’s proposal to rely more strongly on trust-owned firms, since the latter exhibit a structural deficit in workplace democracy and impose overly demanding altruistic requirements. Finally, it justifies the opportunity for private shareholding by addressing issues of entry costs, financing, and portfolio diversification, and it argues for a strong role of the public shareholder by showing that disinvestment threats from private shareholders persist under Plural Cooperativism.