Louis Kelso's binary economy

Ashford, Robert

doi:10.1016/s1053-5357(96)90052-9

Cited by 17 publications

(6 citation statements)

References 8 publications

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“…Binary economics was initially developed by Louis Kelso in his book co-authored with Mortimer Adler and entitled "The capitalist manifesto" in 1958. An overview of binary economics is presented by Ashford (1996Ashford ( , 2012. Kelso was both a practitioner and a theorist.…”

Section: Sharing the Ownership In Peru And Mexicomentioning

confidence: 99%

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Sharing the ownership in Peru and Mexico: the case of a French MNE prompting the SDGs achievement

Aubert,

Cordova,

Hernandez

2024

CPOIB

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Purpose This study aims to investigate how a French multinational enterprise (MNE) is developing employee stock ownership (ESO) in its subsidiaries in Peru and Mexico, both Latin American countries with deep social and economic inequalities. Design/methodology/approach This is a qualitative case study which conducted interviews with representatives of the French MNE and its subsidiaries in Peru and Mexico. Findings The employee stock purchase plans offered by the company to its employees support the achievement of the sustainable development goals (SDGs) 1, 8 and 10 in these countries. Social implications The authors argue that MNEs could become flagships in the SDG achievement in emerging economies. Originality/value By contributing to better workplace outcomes and enhanced corporate performance, ESO is in line with SDG 8. ESO also fulfills SDGs 1 and 10 by allowing employees to build up savings and wealth, whose lack is the main source of inequality and poverty. Reciprocity and binary economics theories explain these relationships.

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Section: Sharing the Ownership In Peru And Mexicomentioning

confidence: 99%

“…The solution he proposes is to make ESO available to as many people as possible. According to Ashford (1996, p. 2):…”

Section: Literature Review: the Contribution Of Employee Stock Owners...mentioning

confidence: 99%

Sharing the ownership in Peru and Mexico: the case of a French MNE prompting the SDGs achievement

Aubert,

Cordova,

Hernandez

2024

CPOIB

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“…Non-human capital, he concluded, contributes to production alongside labor, and thus full citizenship in the economy should involve not just employment but capital ownership as well. As capital increases its share in the productive matrix through technology, he reasoned, ownership can begin to eclipse people's dependence on employment altogether [26][27][28]. Kelso and his collaborators-notably, popular philosopher Mortimer Adler and political scientist Patricia Hetter Kelso-used various terms for this proposition and what it entails, such as two-factor theory, universal capitalism, democratic capitalism, and binary economics.…”

Section: "Extending the Esop Revolution"mentioning

confidence: 99%

User trusts: broad-based ownership for online platforms

Schneider

2020

Informatik Spektrum

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This essay introduces what promise a novel broad-based capital strategy-trusts serving platform users-might hold for the online economy, especially as an enabler of more widespread, organized, and democratic user accountability. It draws on lessons from the experience of employee ownership alongside emerging opportunities for other kinds of broad-based ownership structures. User-oriented trusts could enable meaningful co-governance and profit sharing among essential stakeholders, a prospect that merits research and experimentation.

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“…The concept of independent productiveness does not negate the fact that both capital and labor are generally needed to complete specific kinds of work, or the fact that labor is needed to invent, design, create, install, operate, maintain, store, repair, manage, and finance 1 For an analysis of binary economics as a distinct paradigm, see Ashford (1996) and Ashford and Shakespeare (1999). For an analysis of binary economics in standard micro-and macro-economic terms see Ashford and Kantarelis (2008).…”

Section: Productivity and Productivenessmentioning

confidence: 99%

Broadening the Right to Acquire Capital with the Earnings of Capital: the Missing Link to Sustainable Economic Recovery and Growth

Ashford

2010

Forum for Social Economics

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This article presents a proposal to broaden the right to acquire capital with the earnings of capital as a means of promoting sustainable economic recovery and growth. It would open the markets for real and financial capital acquisition more fully and competitively to poor and working people (1) to distribute more broadly the earnings of capital and (2) to profitably employ more capital and labor.The article notes that both the recession and the strategies advanced to promote economic recovery may be viewed as responses to the prospect of inadequate present and future earning capacity of both consumers and producers (1) to purchase what can physically be produced and (2) to repay existent and anticipated debt obligations undertaken to stimulate the economy.To increase the prospects of sufficient, sustainable earning capacity, the approach advanced in this article is to extend to all people the same protections and benefits presently provided by government that facilitate market transactions whereby capital is acquired with the earnings of capital primarily for people in proportion to their wealth.Although in theory, all people in a market economy are able to acquire capital with the earnings of capital, reliable empirical data reveal that as a practical matter, the major determinant of the ability of individuals to acquire capital with the earnings of capital is the existing distribution of capital ownership.The theory of "binary" economic growth (on which the proposal advanced in this article is based) holds that the market return on capital depends not only on the wage rate, the scarcity of capital, its marginal productivity, and the interest rate, but also depends on the distribution of capital acquisition with the earnings of capital. The prospect of a broader distribution of capital acquisition with the earnings of capital carries with it the prospect of more broadly distributed earning capacity in future years, which in turn will provide the market incentives to profitably employ more capital and labor in earlier years. The idea that the broader distribution of capital acquisition with the earnings of capital will promote growth is not found in any of the widely accepted theories and models of economic growth such as those proposed by Schumpeter, Solow, Roemer, and Lucas.By opening to all people the institutions of corporate finance, banking, insurance, government loans and guaranties, and monetary policy (the very institutions presently relied upon by the Federal Government to stimulate the economy) the practical ability to acquire capital with the earnings of capital can be more broadly extended to all people, and a more level and competitive economic playing field can be established, with the result that greatly enhanced prospects for greater and more broadly distributed earning capacity and growth can be reasonably expected and realized by all.

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Louis Kelso's binary economy

Cited by 17 publications

References 8 publications

Sharing the ownership in Peru and Mexico: the case of a French MNE prompting the SDGs achievement

Sharing the ownership in Peru and Mexico: the case of a French MNE prompting the SDGs achievement

User trusts: broad-based ownership for online platforms

Broadening the Right to Acquire Capital with the Earnings of Capital: the Missing Link to Sustainable Economic Recovery and Growth

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