Capital Democratization

17 Pages Posted: 15 Feb 2006

See all articles by Robert Ashford

Robert Ashford

Syracuse University - College of Law

Demetri Kantarelis

Assumption College

Date Written: December 31, 2005

Abstract

Although, the ideas underlying binary economics were first published in 1958 (Kelso and Adler), the many books and papers that discuss the subject, with the exception of Kane (2000) and Kurland (2001), 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, as compared with the binary environment, 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.

Keywords: binary economics, capital ownership, economic growth, automation, unutilized capacity, democracy, leisure, economic justice, private property, employee ownership, ESOPs, efficiency

JEL Classification: A00, A20, B00, B2, B3. E00, I3, K00, N00, O00, P1

Suggested Citation

Ashford, Robert and Kantarelis, Demetri, Capital Democratization (December 31, 2005). Available at SSRN: https://ssrn.com/abstract=879790 or http://dx.doi.org/10.2139/ssrn.879790

Robert Ashford (Contact Author)

Syracuse University - College of Law ( email )

Syracuse, NY 13244-1030
United States
315-677-4680 (Phone)

Demetri Kantarelis

Assumption College ( email )

500 Salisbury Street
Worcester, MA 01609
United States

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