22 Rutgers L.J. 3 (1990-1991)
The Binary Economics of Louis Kelso: The Promise of Universal Capitalism

handle is hein.journals/rutlj22 and id is 15 raw text is: THE BINARY ECONOMICS OF LOUIS KELSO:
THE PROMISE OF UNIVERSAL CAPITALISM© t
Robert H.A. Ashford*
I.  INTRODUCTION  ..................................          5
A.   Overview  of  This Article  .....................    5
B.   Overview of Binary Economics and Its Relation to
Traditional Economics  .......................       7
C. Binary Economics and Employee Stock Ownership
P la n s  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  13
D.   Purpose  of  This  Article  ......................  17
E.   Structure  of  This  Article  .....................  18
II. BINARY ECONOMICS: ECONOMIC JUSTICE THROUGH UNI-
VERSAL CAPITAL OWNERSHIP .....................           19
A.   Binary Economic Theory .....................        19
B.   A National Binary Financing Program .........       54
C.   Predictions Based on Binary Economics ........      62
III. PRELIMINARY ANALYSIS OF BINARY ECONOMIC PREDIC-
T IO N S  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  6 3
A .  G row th  ....................................      63
B .  Inflation  ...................................      67
C.   The Risks and Incentives ....................       68
© Copyright 1990, Robert H.A. Ashford.
t This article is dedicated to Dr. Louis 0. Kelso, whose concepts of private property
and market economics give me special hope for democracy and economic justice.
I have known Louis Kelso since 1970. From 1973 through 1977, I worked for and with
him on various projects and undertakings. His steadfast dedication to solving the problem of
poverty has been an inspiration to me. In the course of our professional relationship, we have
also developed a close friendship.
* Professor of Law, Syracuse University College of Law, Syracuse, New York. B.A.
University of South Florida, 1965; J.D. Harvard University, 1969.
The author is especially grateful to Dr. Kelso for the care he took in reviewing and
commenting on two earlier drafts of this article. The author also expresses appreciation to
Professors Nicholas A. Ashford, Richard M. Buxbaum, Samuel M. Fetters, Joe Kelley, P.
John Kozyris, Banks McDowell, and D. Michael Risinger, and to Frank Conners, Esq. and
Nikos Stamos, Esq., for helpful comments on earlier drafts of this article. Gratitude is also
expressed for helpful comments at three faculty seminars: two at Syracuse University in
1988 and 1990, and one at Stetson University in 1989. Finally, special thanks to Cynthia
Hendershott Egan, of The Kelso Institute, for her invaluable assistance in documenting this
article.

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