Binary economics
Binary economics asks two basic questions: “Who or what creates wealth, and, why are there so few capitalists in capitalist[1] societies?”[2]
In investigating these questions, binary economics provides a new way of approaching economic reality. Asking the first question, it is observed that there are two ways of earning a living[3] — working through one’s labour and working through one’s capital assets. In dealing with the second question, binary economics discloses institutional obstacles to universal ownership of income generating capital assets.
Most of the criticism from professional economists arise from the underlying paradigmic difference between mainstream economics and binary economics[4] It is claimed, however, that the paradigm forming the basis of mainstream economics cannot adequately reflect modern economic realities. One of the most important changes in economic reality is the labour/capital ratio as inputs to wealth producing economic processes.[5]
- ↑ Capitalist, as a person, is one who derives a substantial income from the ownership of income generating assets. Owning stocks and shares is one means of living on income from capital.
- ↑ James S. Albus, Peoples' Capitalism--The Economics of The Robot Revolution (1976)
- ↑ Income:- The flow of wages, interest payments, dividends, and other receipts accruing to an individual or nation. (Samuelson and Nordhaus, Economics (1989).
- ↑ Ashford and Shakespeare, Binary Economics—The New Paradigm (1999).
- ↑ Binary Productiveness in Ashford and Shakespeare (1999).