Binary Economics Principles
48 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary critique of capitalism according to binary economists?

  • The lack of government interference in the market mechanism
  • The inability to achieve general affluence for all people
  • The focus on labor productivity
  • The existence of institutional barriers to broad-based ownership (correct)

    • According to Robert Ashford and Rodney Shakespeare, what does Kelso's theory offer?

  • A new understanding of the relationship between humans and things in production (correct)
  • A new definition of labor productivity
  • A new strategy for justifying mass redistributions of purchasing power
  • A new explanation for poverty and affluence under socialism

    • What is the consequence of artificial institutional barriers to broad-based ownership?

  • Labor productivity increases significantly
  • Government interference in the market mechanism increases
  • People can only expect to legitimate their incomes through labor (correct)
  • The market system functions efficiently

    • What is a fundamental flaw in today's dominant economic paradigms?

    <p>The focus on labor productivity</p> Signup and view all the answers

    What does binary economics propose as a solution to economic problems?

    <p>Broad-based ownership and contribution to the economic process</p> Signup and view all the answers

    What is the goal of achieving general affluence for all people according to Kelso's theory?

    <p>On free market principles</p> Signup and view all the answers

    What is the consequence of people being unable to contribute to and gain from the economic process?

    <p>Government is forced to interfere with the market mechanism</p> Signup and view all the answers

    What principle is referred to by Louis Kelso and Mortimer Adler?

    <p>Principle of limitation</p> Signup and view all the answers

    What is the title of the book that explains Kelso's theory and offers clear definitions and examples of key concepts?

    <p>Binary Economics: The New Paradigm</p> Signup and view all the answers

    What is the term used by William Greider to describe the shifting of jobs to cheaper labor markets?

    <p>Wage arbitrage</p> Signup and view all the answers

    What is the main problem identified by binary economists?

    <p>System controlling access to money, credit, and capital ownership</p> Signup and view all the answers

    What is the main source of economic growth according to binary economists?

    <p>Capital</p> Signup and view all the answers

    What is the consequence of the omission in the theoretical frameworks of Adam Smith, Karl Marx, and John Maynard Keynes?

    <p>Inequitable distribution of income</p> Signup and view all the answers

    What is the primary goal of binary economics?

    <p>Achieving distributive justice</p> Signup and view all the answers

    What is the primary consequence of the current system of capital ownership?

    <p>Concentration of economic power among a small elite</p> Signup and view all the answers

    What is the main difference between binary economics and conventional economics?

    <p>Recognition of the increasing productiveness of capital</p> Signup and view all the answers

    What is the primary role of the state in a binary economic system?

    <p>To promote justice by eliminating special privileges, monopolies, and other barriers</p> Signup and view all the answers

    What is the main objective of participative justice?

    <p>To provide equal opportunity for every person to contribute to the production of society's marketable wealth</p> Signup and view all the answers

    What is the primary principle of distributive justice?

    <p>Labor contributions should be compensated at a market-determined rate</p> Signup and view all the answers

    What is the ultimate goal of social justice in a market-based economy?

    <p>To balance and restore participative and distributive justice</p> Signup and view all the answers

    What is a key aspect of democratizing ownership of capital?

    <p>Universal access to money and capital credit for financing growth and transfers of productive assets</p> Signup and view all the answers

    What is a consequence of social justice in a market-based economy?

    <p>Defective or unjust institutions are corrected</p> Signup and view all the answers

    What is a fundamental human right in a binary economic system?

    <p>Equal opportunity for every person to contribute to the production of society's marketable wealth</p> Signup and view all the answers

    What is the primary goal of binary economics?

    <p>To create a truly free and just global marketplace</p> Signup and view all the answers

    What is the primary obstacle to achieving universal access to money and credit in the current economic system?

    <p>The flawed system controlling access to money, credit, and capital ownership</p> Signup and view all the answers

    What is the primary consequence of the widening gap in capital ownership and economic power between the elite and the majority?

    <p>Increased income insecurity for most workers</p> Signup and view all the answers

    What is the primary goal of democratizing capital ownership in a binary economic system?

    <p>To ensure that all individuals have a stake in the economic system</p> Signup and view all the answers

    According to binary economics, what is the primary source of economic growth?

    <p>Improvements in technology and capital assets</p> Signup and view all the answers

    What is the primary limitation on the exercise of private property rights in a binary economic system?

    <p>The principle of limitation to prevent harm to others and the general welfare</p> Signup and view all the answers

    What is the primary role of the feedback principle in a binary economic system?

    <p>To promote social justice and fairness</p> Signup and view all the answers

    What is the primary goal of binary economics in regards to capital ownership?

    <p>To democratize ownership of capital assets</p> Signup and view all the answers

    What is the primary consequence of the limited economic power of the state in a binary economic system?

    <p>The state has limited ability to regulate the economy</p> Signup and view all the answers

    What is the primary consequence of the current system of capital ownership?

    <p>Financial insecurity and economic dependency for the many</p> Signup and view all the answers

    What is the primary principle of social justice in a binary economic system?

    <p>The right to private property and the fruits of one's labor</p> Signup and view all the answers

    What is the primary principle of just wages and prices in a binary economic system?

    <p>The principle of social justice and fairness</p> Signup and view all the answers

    What is the primary goal of social justice in a binary economic system?

    <p>To ensure that all individuals have access to the resources they need to thrive</p> Signup and view all the answers

    What is a primary aspect of democratizing ownership of capital in a binary economic system?

    <p>Universal access to money and capital credit</p> Signup and view all the answers

    What is the primary role of the state in a binary economic system?

    <p>To facilitate universal access to money and credit</p> Signup and view all the answers

    What is the primary objective of participative justice?

    <p>To ensure that all individuals have a stake in the economy</p> Signup and view all the answers

    What is the limited economic power of the state in a binary economic system?

    <p>Promoting justice by eliminating special privileges and monopolies</p> Signup and view all the answers

    What is the primary consequence of social justice in a market-based economy?

    <p>Universal affluence and economic freedom</p> Signup and view all the answers

    What is the primary goal of universal access to money and credit in a binary economic system?

    <p>Enabling growth and transfers of productive assets</p> Signup and view all the answers

    What is the purpose of just wages and prices in a binary economic system?

    <p>To ensure equal opportunity for participation</p> Signup and view all the answers

    What is the primary principle of just wages and prices in a binary economic system?

    <p>The market determination of wages and prices</p> Signup and view all the answers

    What is the primary goal of social justice in a binary economic system?

    <p>Balancing participative and distributive justice</p> Signup and view all the answers

    What is the feedback principle in a binary economic system?

    <p>Social justice, which balances participative and distributive justice</p> Signup and view all the answers

    What is a primary principle of distributive justice in a binary economic system?

    <p>Rewarding capital contributions with residuals</p> Signup and view all the answers

    What is a fundamental human right in a binary economic system?

    <p>The right to equal opportunity for participation</p> Signup and view all the answers

    Study Notes

    Binary Economics

    • States that in a genuinely free market economy, people should be able to contribute to and gain their incomes from both their labor and capital inputs.
    • Asserts that current economic policies create artificial institutional barriers to broad-based ownership, limiting people to legitimizing their incomes through labor alone.
    • Argues that this leads to market system breakdown, requiring government interference and income redistribution.

    Key Principles of Binary Economics

    • Democratizing ownership of capital, including universal access to money and capital credit.
    • Restoring and universalizing access to the full rights of private property.
    • Limiting economic power of the state to promote justice and eliminate special privileges.
    • Free and open markets for determining just wages, just prices, and just profits.

    Principles of Economic Justice

    • Participative justice: equal opportunity for every person to contribute to production as a worker and owner of productive assets.
    • Distributive justice: compensating labor and capital contributions at market-determined rates.
    • Social justice: balancing and restoring participative and distributive justice, counteracting monopoly tendencies, and promoting personal responsibility to correct unjust institutions.

    Addressing Globalization Issues

    • Binary economics addresses problems such as income insecurity, wage arbitrage, and widening capital ownership gaps.
    • Argues that the real problem is not a conspiracy, but the system controlling access to money, credit, and capital ownership.

    Kelso's Theory

    • Combines classical market theory, classical moral philosophy, and spiritual values.
    • Identifies the flaws in Adam Smith, Karl Marx, and John Maynard Keynes' theories, particularly their failure to recognize the increasing productiveness of capital as the main source of economic growth and widespread income distribution.

    Binary Economics: Principles and Concepts

    • Rejects pure laissez-faire assumptions, aiming for a free and just global marketplace.
    • Built on four pillars: democratizing ownership of capital, universal access to money and capital credit, limited economic power of the state, and free and open markets.

    Three Principles of Economic Justice

    • Participative Justice: equal opportunity for every person to contribute to production as a worker and owner of productive assets.
    • Distributive Justice: compensation for labor at a market-determined rate, and capital contributions compensated by residuals (profits and rentals).
    • Social Justice: balancing and restoring participative and distributive justice to counter monopoly tendencies and promote equality.

    Binary Economics Addresses Global Issues

    • Addresses problems such as income insecurity, wage arbitrage, and the widening gap in capital ownership and economic power.
    • Seeks to correct the system controlling access to money, credit, and capital ownership.

    Kelso's Binary Economic System

    • Combines classical market theory, classical moral philosophy, and spiritual values.
    • Recognizes the increasing productiveness of capital as the main source of economic growth and widespread income distribution.
    • Highlights the omission of Adam Smith, Karl Marx, and John Maynard Keynes in not recognizing the role of capital.

    Ownership Economics

    • There are two modes of legitimate contribution to production: human inputs (labor) and non-human inputs (capital).
    • Binary economics attributes increases in the labor-capital mix to capital assets, not increased labor productivity.

    Widespread Ownership and Economic Freedom

    • Broad-based affluence and economic freedom can be achieved through widespread ownership of constantly improved capital assets.
    • Shared abundance and sustainable economic growth are achievable by connecting every person through private ownership of property.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Description

    Learn about the key concepts of Binary Economics, including the importance of broad-based ownership and its impact on the market system.

    More Like This

    Say's Law and Binary Economics Quiz
    18 questions

    Say's Law and Binary Economics Quiz

    SereneCarnelian avatar
    SereneCarnelian
    Transitioning to a Binary Economy
    7 questions

    Transitioning to a Binary Economy

    SereneCarnelian avatar
    SereneCarnelian
    Basic Principles of Binary Economics
    20 questions

    Basic Principles of Binary Economics

    SereneCarnelian avatar
    SereneCarnelian
    Qualitative and Limited Dependent Variables Overview
    45 questions

    Qualitative and Limited Dependent Variables Overview

    IlluminatingNourishment7916 avatar
    IlluminatingNourishment7916
    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser