Uploaded January 2018 | Updated September 2026, 3 weeks ago
Introduction
“The form of association ... which if mankind continue to improve, must be expected in the end to predominate, is not that which can exist with capitalist as chief, and workpeople without a voice in the management, but the association of the labourers themselves on terms of equality, collectively owning the capital with which they carry on their operations, and working under managers elected and removable by themselves.”
- John Stuart Mill, Principles of Political Economy, 1848
"Through their distinctive focus on values, cooperatives have proven themselves a resilient and viable business model that can prosper even during difficult times. This success has helped many families and communities from sliding into poverty."
-United Nations Secretary-General, Ban Ki-moon
This Block is concerned with the economic theory of "The form of association" described by Mill in this quote from his "Principles of Political Economy". Mill is describing what economists call a Labour-Managed (or Self-Managed) Firm (LMF). There is a more precise definition of such a firm later in this Block. Like most economic theory, the theory of the LMF is expressed mathematically, but the maths required is quite simple and can be made more accessible by the use of diagrams
Introduction
“The form of association ... which if mankind continue to improve, must be expected in the end to predominate, is not that which can exist with capitalist as chief, and workpeople without a voice in the management, but the association of the labourers themselves on terms of equality, collectively owning the capital with which they carry on their operations, and working under managers elected and removable by themselves.”
- John Stuart Mill, Principles of Political Economy, 1848
"Through their distinctive focus on values, cooperatives have proven themselves a resilient and viable business model that can prosper even during difficult times. This success has helped many families and communities from sliding into poverty."
-United Nations Secretary-General, Ban Ki-moon
This Block is concerned with the economic theory of "The form of association" described by Mill in this quote from his "Principles of Political Economy". Mill is describing what economists call a Labour-Managed (or Self-Managed) Firm (LMF). There is a more precise definition of such a firm later in this Block. Like most economic theory, the theory of the LMF is expressed mathematically, but the maths required is quite simple and can be made more accessible by the use of diagrams
