Employee Stock Ownership Gets a Boost

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National Defense Authorization Act signed by President Trump in August 2018 was language directing the U.S. Small Business Administration to help retiring owners sell their businesses to their employees, either as a worker cooperative or as an Employee Stock Ownership Plan.

By Fran Korten:

https://www.yesmagazine.org/new-economy/a-boost-for-the-worker-owned-economy-20180925

13 comments

  1. He probably didn’t read it. The law is good and has been in the works for several years before Trump.

  2. Pavlos Papageorgiou are you referring to me?

  3. I mean Trump probably didn’t read the legislation.

  4. Pavlos Papageorgiou the first thing you may need to understand in order to interpret both my comment and my response to you, is that Donald Trump is not any sort of paleo conservative. Not in the original Catholic interpretation, nor in any of the more modern interpretations.

    In fact, nothing I said has anything to do with Donald Trump.

    It, since you automatically equated the idea of individual ownership of capital as something to do with Trump, I feel justified telling you that you are too ignorant of anything I have said for you to be worth responding to further. Do better

  5. Gideon Rosenblatt might be some misunderstanding. If so I apologize.

  6. I have no quarrel with Christof Harper, I was just commenting on the original post.

  7. Pavlos Papageorgiou I understood you to be saying something you weren’t.

    (It’s a problem when Trump is the topic of everything, though)

    No, Donald Trump likely did not read every bit of the bill. If we only passed bills that a sitting President could find time to read extensively, people like myself would be very happy because government would do about 2% of what it currently does. we have WAY too much government involvement in every aspect of life.

    However, as it happens, the idea of making it easier to sell companies to EEOPs and Co-op corporations is, very really, in line with paleo-conservative thinking.

    To be sure, many of the groups advocating for this have an eventual goal of eliminating all personal ownership, but that’s actually something you can ignore for various reasons (not the least of which is that once people do own their own means of production, it’s very difficult to convince them that state ownership is workable)

    But one of the bases of paleocon thinking can be expressed in agrarian terms as “three acres and a cow”, or, in modern terms- individual ownership of the means of production.

    I’m not convinced, having dealt with some SBA programs in the past, that it’s going to be nearly as clean and positive as it sounds once you get to the “government doing stuff” aspects of this, but the idea is good.

  8. I can assure you that this was added by an SBA expert and wasn’t even known by the WH. The loan guarantees have significant value.

    Since this has had zero PR we’ll see how often it is used.

    Here’s where community workers could come in very handy.

    I also wonder if this could be used to physically move a business to a location actually closer to the workers? This might, in at least small part, help communities that need rebuilding.

    Just a thought. Someone who knows could be helpful. Good catch Gideon Rosenblatt .

  9. Stuart O’Neill how do you figure that would work? I understand the idea of “worker communities” and the various justifications.

    But I am not familiar with many small businesses (and I am using both the SBA definition of 35 million in sales and 1500 employees and the more familiar <500 employee metric) that have a centralized workforce that would allow for creating "co,pant townships" by destroying existing infrastructure and building completely new capital near a supposed inclusive housing block.

  10. I don’t think the people behind this are motivated by eliminating personal ownership. Their focus is on broadening ownership and tying it more closely to the people who are actually contributing the real value to these enterprises. And by the way, aside from IPO funding and some very rare injections of new funding later on in an enterprises’ life, external shareholders don’t provide any real investment in the firm itself. They play a valuable role in providing liquidity for shares.

  11. Gideon Rosenblatt some of the groups mentioned in the article are specifically into “property is theft” ideologies.

    I have been involved in co-ops for over a decade and there are definitely hard Marxists involved. You can usually ignore them for the most part because they are about as good at money and budgets as diggers. 😉

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