2012 upstate cooperatives summit

This event was held at the Syracuse South Side Innovation center. The center is sponsored by Syracuse University. They did a good job restoring the former warehouse into a nice looking business center. It's clearly a resource that has a need to balance community wants with the need for security and safety. To this end, they offer a card access system to members that allows access using an automated badge system. Here, a few of us can be seen gathering at the side entrance to be let in.

Inside, I found some glass enclosed cubical areas. The furniture, computers and carpeting seem reasonably new. The main part of the center appears to be a large main lecture hall surrounded by several business incubator offices. This large room and a smaller conference room were where the talks were held. There were other offices that I presume had shared resources that the tenants could use.

I was impressed that the hosts were able to offer low cost tickets (or no cost for unemployed people such as myself) and still put on a good show. After a short check-in period, the talks started. They were all interesting. Like so many events of this nature, I really wanted to be in two places at once!

There were several messages that I got from the event. Co-ops come in many forms.

• Worker Co-Ops, (can be for profit or not)
• Membership non-profit
• General catch-all
• Agricultural co-ops

Here's some other quick trivia. Co-ops are more popular in times of economic distress. Co-ops (including banks) do over two trillion dollars a year in business. Co-ops need at least 5 members. Owners are "members", each having one share and one vote. They have the same personal asset protection benefits of a corporation. The Bylaws define how the co-op operates and also specifies how it disbands should the members desire that. Dividends are legally limited to 12% of capital. Co-ops tend to have a better success rate than other business structures. A new development is that co-ops can now issue non-voting "preferred" stock for investors. I didn't catch the jurisdiction of this. So, it may be state based laws that govern this rather than national. When forming a co-op, it's wise to deal with lawyers and accountants that specializes in them.

While there was much more covered in the talks, here is my highly biased opinion of co-ops. In my opinion, a co-op member is essentially "buying" their job. The buy-in amount is typically quite large. However, members sometimes "buy their share" over time through salary deduction. This of course creates a large incentive for co-op members to succeed and reduces employee turnover. However, it also requires a great deal of trust since such a situation can lead to self-exploitation of co-op members.

Second, unlike corporations, co-ops are not legally required to make shareholder profit be a primary goal. Instead, they can choose to measure success in other ways. Since the co-op isn't a slave to maximizing short term profits, this is potentially a very powerful business structure!

Third, co-ops still need to provide a good "Value Proposition" to all involved parties. Just like any business, they need to succeed in terms of offering better prices, better quality or better variety. Working with "anchor institutions" such as universities seems to be a niche strategy that co-ops are uniquely able to do. Non-profits sometimes have "goals" that can be more easily achieved via a co-op rather than through a conventional profit oriented business. For example, minimizing CO2 in some operations may be a technique that conventional business cannot do since it would not be as profitable to the shareholders.

During the Q&A session, I asked if it was beneficial to start as another business structure then convert to a co-op. I then asked several other people about this. The consensus was, If a co-op is what is desired, then it should start that way. The one exception to this would be for an existing business to be bought by the employees while offering a fair deal to the former owners.

Other points I picked up was a review of how the federal government makes laws. This was during the discussion of the proposed law HR3367 which would provide funding for assisting the formation of new co-ops in urban areas. I had forgotten how much a law could be changed by going through various committees in both Congress and the Senate! Reviewing the lobbying process, I'm surprised any law survives even remotely in it's original form.

Finally, at the end, the "Dream Freedom Revival" performed for the group. They also involved the audience (I even got up on stage myself). It was performance art at it's best. Very motivational! The food was good too. It was served on reusable plates, was disposed of organically and dishes were cleaned with the help of the guests. Overall, the whole event was very well run.

The talks covered can be seen at http://cny.coop/schedule
There is an active discussion group at http://lanyrd.com/2012/cnycoop/
They also have a Facebook page
There is a directory in case you want to find a coop in NY state.
The main site is at http://www.cny.coop/

Why are humans the only animal that needs to "pay" to exist?

Somebody asked me why humans are the only animal that needs to pay to live. To understand the question, one must first understand what "payment" is, which is usually the exchange of "money". Money has become very complex stuff. Most people would say the $20 dollar bill in their wallet was money. Trading a $20 for a tangible item at a convenience store happens countless times a day. Doing the same with a check or credit card is effective too. In fact, if the store owner thinks you are trustworthy, you may even be able to swap an IOU note for an item or two. Yet nature doesn't care about money or pricing at all. A wild hungry animal is as likely to eat you as not no matter what your credit score is. If you're trapped alone on an island, you'll be just as hungry with or without a knapsack full of gold or hundred dollar bills. So, money is apparently a human construct.

Money is simply one of many relationships two or more humans can have. For example, suppose you were to go back in time to become a peasant in ancient Japan. Suppose a Shogun warrior then shows up demanding tribute as was common in that time. Here's a guy who has state of the art weaponry, armor and training of that day. As a peasant, you have a choice. You can either fight him and likely be destroyed or pay him to leave you alone. You could offer him chickens, rice or perhaps an IOU for part of a future harvest. This is the ultimate basis of taxes. Someone, be it the IRS, the Sheriff of Nottingham, or your local mafia group wants a payoff. If it's a government, the payoff happens to be called a "tax".

Furthermore, since wealth is frequently too bulky to conveniently be carried away, they want their tax represented in a form such as an IOU, gold, check or most often paper currency. That way, YOU eventually provide the physical wealth or service to them when and where they want it in exchange for more money to pay more future taxes. This special form of money is referred to as "paper currency." In return, a government usually enforces real-estate laws, maintains the transportation infrastructure and has a police force to protect not only it's existence but the existence of wealth producers among other services (all making the populace more efficient to either be taxed more or at least not protest as much when they are taxed). So, there you have it. In a nutshell, the primary value of currency is for paying taxes. Since nearly everyone pays taxes either directly or indirectly, government currency has developed into an indirect wealth storage system of sorts. Other forms of "money" such as IOUs or gold still exist but currency seems to be the way most forms of money exist today.

Many people in the U.S. have found having a "job" is the easiest way to attract currency to pay taxes. Most citizens pay property tax (or rent, which is property tax + profit), sales taxes, income tax and plus assorted usage taxes from automobile registrations to building permits. Along the way, opportunists such as bankers or business people profit from manipulating this system in their favor. Some common ways of doing are by simply by buying low then selling high, charging interest or issuing credit. The video "Money as Debt" explains how bankers profit from controlling the monetary system in more detail. That video is one of the easiest ways to understand how money works today.

So basically, this is why humans appear to "pay" to live. Each, a person has a choice. Either pay off their warlord (or government) or become the government. Once in charge, the new government will often issue their own "currency" for property tax enforcement since that is the essence of government power. However, being the person in charge is lots of work and the position can sometimes have very crappy job security. Other people will try assassinations (or elections) since they think they can do a better job. In addition, other governments will be trying to take over the territory either through military or economic action. So, being in charge isn't always good. If it were possible to ask Saddam Hussein about this, I think he would agree.

Resources for the newly unemployed

Here are some job loss tips that may be helpful.

Get registered with the unemployment system as quickly as possible.
Keep in mind that you may not qualify for benefits. Many job categories such as sales jobs or temp jobs prevent you from getting any benefits at all.
In most cases owning your own business also disqualifies you too.  However, before giving up, meet with a counsler. You may find benefits such as having civil service exam fees waived or special categories you fit into that might give you some indirect benefit.  If nothing else, there are usually reasonably priced computers, copiers and faxes available. 

• For a regular layoff, no problem. In fact some cheap companies have their seasonal employees go on unemployment as part of their business plans.. 
• For a firing or "letting go", expect a fight.  They will likely try to deny you benefits. Reviewing the case might take up to 8 weeks. So, have some savings to live on. They will eventually contact you to review your case but only if you register with unemployment ASAP! 
• If YOU paid into the system via a deduction on your paycheck, you have a strong claim that shouldn't be dismissed because your former employer wants to save some money.
• Some jobs don't qualify you at all! Self employment falls into this category. However, being a board director of your own company might still allow you to collect. So, when setting up a company, give yourself a  parachute in case your company fails!

While you're in your first week of unemployment.

• Contact all people references you intend to use. Give them a call. Make sure their contact info is current.
  
• Update your resume with what you've been doing recently. Collect past awards, certificates and attaboy awards. You may have more experience than you think!
• Do an immediate search of the area for similar jobs. If you are lucky, you may just slide into another job without even drawing unemployment!
  
• Take time to visit the dentist, doctor, optometrist, barber and auto repair. Do long term things you would normally take time off to do.  Your next job will not give you time to do these tasks.
• Deal with your 401K. You hopefully will be fully employed so you won't have time to do that in your next job either!

Some unemployment issues to consider
At least in NY, you only have 28 weeks of benefits. However, you don't need to draw on that claim right away. So, you can take on high paid work without losing your claim if the work is only for a specific period of time (eg. 3 month contract) Just make sure you TELL the unemployment people this work is of a fixed period. If you QUIT, you lose your original claim. However, if your contract isn't renewed, you can keep your original claim for up to a year.

• If, after the second week, you aren't getting a check, make an appointment with an unemployment job counselor. They may not be too useful in finding a job. However, they would know of most benefits you can qualify for.
  
• If you DO get benefits, life is good. You can take a job that's really challenging and you'll have a temporary safety net for up to a year. Perhaps taking a job at a shaky start-up company is something you want to try. Maybe you want to try your hand at direct sales (which normally doesn't qualify for unemployment benefits). Just insist on a fixed probation period when you'll be assessed.  If you succeed, that's great! If you fail, you still have your original claim as a safety net.

If you have a 401K or 403B, grab it quick to put it  somewhere else safe even if its in a moneymarket at your bank.

• Your local credit union or bank can assist you with that transfer. Put it somewhere safe & short term. Perhaps a 6 month CD so you don't need to deal with thinking about it right away.
• The penalties and taxes for drawing from 401K or retirement are severe enough (20% plus early withdraw penalties plus you pay taxes right away) that it competes with credit card debt as to which is worse. It may be that taking on high interest credit card debt makes better financial sense.

After the first two weeks, you may be facing longer term unemployment. If so, here are some things to check.

Welfare - Unfortunately, you need to be incredibly poor for this to be an alternative.

• "temporary" welfare still exists. However, be prepared to say goodbye to good credit. Also, say goodbye to everything else too. I found out as a single person, having a house or car and over $100 in the bank or $400 in assets disqualifies me for virtually every program.  There is also a two month wait even if I did qualify. Not to say it shouldn't be checked out. However, don't expect much. If you have no car, no possessions and have an eviction notice, it's worth checking out. Before doing that,  close your bank account. You won't be needing that, perhaps ever. Oh, and in the spirit of "workfare" you must take a job they say and keep any job assigned, regardless of what it is.
  
• Welfare is divided into different services. Qualifying for one makes it easier to qualify for another. For example, getting home heating assistance (HEAP) usually makes it easier to get food stamps. Getting foods stamps makes it possible to get Medicaid and so on.
• Look into income based programs such as assistance with home repairs or insurance subsidies. You may temporarily qualify for them!

 Review cash sources

• Savings
  
• Unemployment
• Rental or storage space income
  
• Tax rebate
  
• Consider selling items that have high value but low use such as recreational vehicles 
  (unless living in one is a fallback plan)
  
• Potential loan sources such as credit cards, friends or family
• Cash advances from credit cards.
  

Review cash drains

• Anticipated legal costs (if any)
• Anticipated medical (if any)
  
• Get dental work, visit optometrist, get checkup. (If you plan to re-enter workforce)
  
• Mortgage payment (May be able to refinance, but it hurts your credit)
• auto-withdraw for IRA (turn it off)
  
• Health club (keep it. Keeping healthy helps morale)
  
• Home & car insurance (consider a monthly plan if paying yearly is too much)
• Anticipated property taxes (can sometimes split these payments up too)
• Fees from late payments.

Try to reduce the costs you have

• Do laundry at friends instead of at a laundromat (you'll find out who your good friends are)
• Heat/Electric. Wear sweaters and   convert to fixed rate pricing. 
• Water bill (install a flow reducing shower head - about $15)
• Cable - dump it. Replace CATV and Internet with a prepaid smartphone.You'll need both phone and data for job searches (Just make sure the phone can teather or perform as a hotspot)
• To conserve fuel and car maintenance walk, bike and bus more. Don't be stupid about it. Drive to job interviews. That way, you'll look and feel your best.
• Start a table top garden. It's low cost and VERY good therapy.
• Although single people don't usually qualify for food stamps, they can still visit a food pantry with only minimal questions asked. When your finances are better, donate back so they stay around.
• If you rent and cannot pay, the eviction process is usually 30-45 days but it can sometimes be drawn out beyond that. If you think you'll be unemployed for the long term,  get a legal packet from your court house to see what the eviction process is (as if you are evicting someone yourself). That information will tell you what your landlord can and cannot legally do.
  
• If living in a house, foreclosure can give you time but once started, it cannot be stopped!  After all, the bank wants your equity.
  

What you'll probably find is that you can't live on savings forever. However, you can usually go longer than you think. It's critical to give yourself enough time to think about career options. You're now outside the box. Time to start thinking like it!