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Letter to Editor May 28, 1941

Midland Cooperator

Minneapolis, Hennepin County, Minnesota

What is this article about?

A letter from St. Paul, Minn., defends the cooperative movement against accusations of eliminating middlemen and causing unemployment. It argues that commodities still require the same handling effort, profit-takers are replaced by salaried workers, and savings from efficient distribution create more jobs by reinvestment or consumer spending.

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Co-ops and Middlemen

St. Paul, Minn.

TO THE EDITOR:

Opponents of the Cooperative movement often accuse cooperators of elimineting the middlemen, thereby causing unemployment and contributing to the breakdown of the American system of free enterprise.

The fact must be remembered that all commodities must be handled, transported and stored as they move from farm or factory to the ultimate consumer. Approximately the same amount of human effort is required to effect this movement whether the goods are moving through cooperative, mail order, chain store channels or through the hands of individual jobbers, wholesalers and retailers.

Somebody is going to employ men and women to furnish this effort. The only people that have been eliminated along the way so far are the profit-takers, and they have been largely replaced by salaried people.

If the savings made through the process of distribution are plowed back into the business, and cooperatives must put part of their savings back into their businesses to continue expansion, those savings will furnish employment.

If the savings are passed on to the consumer, the consumer can and will use them to buy more goods, thereby creating jobs for more men and women.

Certainly the cooperative movement must have for one of its aims the improvement of the distribution process and the using of the resultant savings to put more people to work producing.

-L. B. RITTER

What sub-type of article is it?

Persuasive Informative

What themes does it cover?

Commerce Trade Economic Policy

What keywords are associated?

Cooperatives Middlemen Unemployment Free Enterprise Distribution Savings Employment Creation

What entities or persons were involved?

L. B. Ritter The Editor

Letter to Editor Details

Author

L. B. Ritter

Recipient

The Editor

Main Argument

cooperatives do not cause unemployment by eliminating middlemen; the necessary work in distribution persists, replacing profit-takers with salaried employees, and savings from efficiencies either fund business expansion or enable consumer spending that creates more jobs.

Notable Details

Commodities Require Handling, Transport, And Storage Regardless Of Distribution Channel. Savings From Cooperatives Improve Distribution And Lead To More Employment Through Reinvestment Or Consumer Purchases.

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