The Progressive Party’s economic structure consists of three tiers.
- Key industries, such as power generation and transport, are owned and operated by the local or state government.
- Medium- and large-scale enterprises operate as cooperatives and are owned by the workers.
- Small-scale private enterprises are owned by individuals.
The main defect of capitalism is that it has created a profit-driven and centralised economy. This consolidates economic power in the hands of a few individuals and a few large corporations. These monopoly corporations would be transformed into either key industries or cooperatives in a Progressive economy.
The cooperative model puts decision-making and executive power into the hands of a company’s employees, rather than a small number of CEOs and shareholders.
The Mondragon cooperatives in the Basque area of Spain have demonstrated that cooperatives are the most effective way to reduce inequality and maintain full employment. Other benefits of cooperatives include the hiring of local residents and community investment. Through a shift from large private companies to cooperatives, a Progressive government will achieve a democratization of the economy that will be more responsive to the needs of communities.