New Economy Movement in the United States
The New Economy Movement in the United States is a loose group of organizations trying to change the economy so people’s well‑being comes first. They want to localize the economy, spread wealth, and promote sustainable business practices. They bring together ideas from ecological economics, solidarity economy, commons, degrowth, systems thinking, and Buddhist economics to challenge mainstream theories.
The movement pushes for more public ownership through cooperatives and state‑owned banks to reduce the harmful effects of capitalism. A prominent figure is Gar Alperovitz, who argues for democratic ownership of businesses to build a fairer, more sustainable society.
Its goals range from community‑level changes like food co‑ops to broader wealth redistribution, a theme seen in the Occupy movement. It grew from dissatisfaction with the current economy, especially wealth gaps, the Great Recession, and growing corporate power. It also addresses social issues like mass incarceration and environmental problems like climate change and overfishing.
Advocates say capitalism in the United States has failed and that a rapid shift to new practices—focusing on conserving resources, measuring success by happiness, and building strong local communities—is needed. They link women’s rights, civil rights, and environmental protection, arguing that politics and the economy must change together.
Many organizations have moved toward more egalitarian and environmentally friendly models, often using Employee Stock Ownership Plans (ESOPs). Today, more than 11,000 companies are owned wholly or partly by employees, involving about 13 million workers. One example is Seventh Generation, which limits pay gaps to promote fairness.
A common form is the benefit corporation (B Corp), now allowed in about 30 states and the District of Columbia. B Corps must consider environmental and social goals alongside profits, and their boards must balance these interests.
Cooperatives are a big part of the movement. About 130 million Americans belong to some cooperative, with credit unions being the most common. Food co‑ops focus on local farming, sustainability, and giving back to communities, often operating as nonprofits and donating surplus crops.
A challenge is that the movement uses terms people associate with socialism, which can scare some Americans. Many see democratic ownership as new or as a threat, making people doubtful. Changing a system that prizes growth is also hard, and some unions rely on growth for jobs, which adds another hurdle.
Overall, the New Economy Movement aims for faster changes that protect the environment, boost well‑being, and strengthen local communities, while navigating political and economic realities that still favor growth.
This page was last edited on 3 February 2026, at 02:50 (CET).