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1. You start a 'democratic' company 2. You make a controversial decision or series of decisions 3. You lose 'voted out' 4. Turns out your controversial decision would've been [firing a few employees/getting acquired/insert unpopular thing here] to keep the company afloat, and everything goes belly up

It's the same reason unions only work in the biggest, most established companies. Everything slows to a crawl otherwise.



Seems Mondragon does just fine.

> cooperatives tend to last longer and are less susceptible to perverse incentives and other problems of organizational governance than more traditionally managed organizations.

https://en.wikipedia.org/wiki/Mondragon_Corporation




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