Екіфакторлы экономика теориясы

Theory of economics
Binary economics, also known as two factor economics, is a theory of economics that endorses both private property and a free market but proposes significant reforms to the banking system. Louis Kelso theorized that widespread use of central bank issued, interest free loans to fund employee owned firms could simultaneously finance economic growth and widen stock ownership in a way which binary economists believe would be non inflationary. The term "binary" derived from its heterodox treatment of labor and capital (but not in the sense of binary opposition). Kelso claimed that in a truly free market wages would tend to fall over time, with all the benefits of technological progress accruing to capital owners.

Binary economics rejects the claim that neoclassical economics alone promotes a 'free market' which is free, fair and efficient. (e. g., as an interpretation of the classical First Fundamental Theorem of Welfare Economics). Binary economists believe freedom is only truly achieved if all individuals are able to acquire an independent economic base from capital holdings, and that the distribution of ownership rights can "deepen democracy". Binary economics argues financial savings prior to investment are not required on the basis that the present money supply is mostly created credit anyway. It argues that newly minted money invested on behalf of those without access to existing cash savings or collateral can be adequately repaid through the returns on those investments, which need not be inflationary if the economy is operating below capacity. The theory asserts that what matters is whether the newly created money is interest free, whether it can be repaid, whether there is effective collateral and whether it goes towards the development and spreading of various forms of productive (and the associated consuming) capacity. Another contrast is that, in evidence based economics, interest (as distinct from administration cost) is practically always necessary; in Binary Economics theory it isn't (not in relation to the development and spreading of productive capacity). Conventional economics accounts for the observed time value of money, whereas binary economics does not.

The theory behind Binary Economics was proposed by American lawyer Louis Kelso and philosopher Mortimer Adler in their book The Capitalist Manifesto (1958). The book's title could be seen as a Cold War reference in opposition to communism. Kelso and Adler elaborated on their proposals in The New Capitalists in 1961. Then Kelso worked with political scientist Patricia Hetter Kelso to further explain how capital instruments provide an increasing percentage of the wealth and why capital is narrowly owned in the modern industrial economy. Their analysis predicted that widely distributed capital ownership will create a more balanced economy. Kelso and Hetter proposed new "binary" share holdings which would pay out full net earnings as dividends (with exceptions for research, maintenance and depreciation). These could be obtained on credit by those not possessing savings, with a government backed insurance scheme to protect the shareholder in the event of loss. Kelso's writings were not well received by academic economists. Milton Friedman said of The Capitalist Manifesto "the book's economics was bad  the interpretation of history, ludicrous; and the policy recommended, dangerous" and recalls a debate where even the moderator Clark Kerr "lost his cool as a moderator and attacked [Kelso's arguments] vigorously". Paul Samuelson, another Nobel Memorial Prize in Economic Sciences winner, told the U. S. Congress that Kelso's theories were a "cranky fad" not accepted by mainstream economists, but Kelso's ideas on promoting wider capital ownership nevertheless significantly influenced the passing of legislation promoting employee ownership.

Binary economics proposes that central bank issued interest free loans should be administered by the banking system for the development and spreading of productive (and the associated consuming) capacity, particularly new capacity, as well as for environmental and public capital. While no interest would be charged, there would be an administrative cost as well as collateralization or capital credit insurance. Proponents of binary economics are dissatisfied with fractional reserve banking, arguing that it "creates new money out of nothing". The supply of interest free loans would place in circumstances of a move (over time) towards banks maintaining reserves equal to 100% of their deposits; in practice, the large scale interest free lending desired by binary economics is compatible with the widespread reduction in money supply that would be caused by increased reserve requirements only if the government takes over the banks' role in credit creation.

Binary economics suggests that ownership of productive (and the associated consuming) capacity, particularly new capacity, could be spread by the use of central bank issued interest free loans. Interest free loans should be allowed for private capital investment IF such investment creates new owners of capital and is part of national policy to enable all individuals, over time, on market principles, to become owners of substantial amounts of productive, income producing capital. By using central bank issued interest free loans, a large corporation would get cheap money as long as new binary shareholders are created.