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Capital democratization

Author

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  • Ashford, Robert
  • Kantarelis, Demetri

Abstract

Although principles underlying binary economics were first published in Kelso and Adler [Kelso, L.O., Adler, M., 1958. The capitalist manifesto, downloadable at Kelso Institute], the many books and papers that discuss the subject generally do not utilize conventional economics language. To facilitate the teaching of binary economics in beginning and intermediate college courses in economics and business, the paper explains some major microeconomic and macroeconomic fundamentals of binary economics by utilizing conventional neo-classical economic models. It then compares the theoretical results reached in a non-binary economic environment to those that may be reached in a binary one. The most important result from the comparison is that, in a non-binary environment, the economy would employ less than full potential capital and thus generate less than optimum output, consumption, saving and investment. The authors hope the article will help the reader to (a) understand the binary principles and (b) analyze the 'binary promise' of greater growth based on a broader distribution of capital ownership.

Suggested Citation

  • Ashford, Robert & Kantarelis, Demetri, 2008. "Capital democratization," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(4), pages 1624-1635, August.
    • Handle: RePEc:eee:soceco:v:37:y:2008:i:4:p:1624-1635
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    References listed on IDEAS

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    1. Gauche, Jerry N., 1998. "Binary economic modes for the privatization of public assets," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 27(3), pages 445-459.
    2. Stephen D. Oliner & Daniel E. Sichel, 2000. "The Resurgence of Growth in the Late 1990s: Is Information Technology the Story?," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 3-22, Fall.
    3. Kane, Stephen V., 2000. "The theory of productiveness: a microeconomic and macroeconomic analysis of binary growth and output in the Kelso system1," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 29(6), pages 541-563, November.
    4. Ashford, Robert, 1996. "Louis Kelso's binary economy," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 25(1), pages 1-53.
    5. Stephen D. Oliner & Daniel E. Sichel, 2000. "The resurgence of growth in the late 1990s: is information technology the story?," Proceedings, Federal Reserve Bank of San Francisco.
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    Cited by:

    1. Robert Ashford, 2010. "Broadening the Right to Acquire Capital with the Earnings of Capital: the Missing Link to Sustainable Economic Recovery and Growth," Forum for Social Economics, Taylor & Francis Journals, vol. 39(1), pages 89-100, January.
    2. Robert Ashford, 2010. "Broadening the Right to Acquire Capital with the Earnings of Capital: the Missing Link to Sustainable Economic Recovery and Growth," Forum for Social Economics, Springer;The Association for Social Economics, vol. 39(1), pages 89-100, April.

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