Binary economics: Difference between revisions
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Binary economics asks two basic questions: “Who or what creates wealth, and, why are there so few capitalists in [[capitalist]]<ref>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.</ref> societies?”<ref>James S. Albus, ''Peoples' Capitalism--The Economics of The Robot Revolution'' (1976)</ref> | Binary economics asks two basic questions: “Who or what creates wealth, and, why are there so few capitalists in [[capitalist]]<ref>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.</ref> societies?”<ref>James S. Albus, ''Peoples' Capitalism--The Economics of The Robot Revolution'' (1976)</ref> | ||
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<ref>'''Income''':- ''The flow of wages, interest payments, dividends, and other receipts accruing to an individual or nation.'' (Samuelson and | 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<ref>'''Income''':- ''The flow of wages, interest payments, dividends, and other receipts accruing to an individual or nation.'' (Samuelson and Nordhaus, ''Economics'' (1989).</ref> — 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<ref>Ashford and Shakespeare, ''Binary Economics—The New Paradigm'' (1999).</ref> 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.<ref> ''Binary Productiveness'' in Ashford and Shakespeare (1999).</ref> | Most of the criticism from professional economists arise from the underlying paradigmic difference between mainstream [[economics]] and binary economics<ref>Ashford and Shakespeare, ''Binary Economics—The New Paradigm'' (1999).</ref> 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.<ref> ''Binary Productiveness'' in Ashford and Shakespeare (1999).</ref> | ||
Revision as of 08:12, 30 May 2007
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).