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Binary economics offers a conception of economics that is foundationally distinct from classical, neoclassical, Keynesian, and socialist economics, usually employed by government, private enterprise, eleemosynary institutions, and individuals to formulate and evaluate economic policy. Binary economics specifically offers a distinct explanation for the persistence of unutilized productive capacity, the persistence of poverty, and suboptimal growth. First advanced in 1958 by Louis Kelso in The Capitalist Manifesto, its underlying principles indicate economic goals and strategies that are distinct from traditional capitalist or socialist solutions. It offers a voluntary market-based strategy for producing much greater and more broadly shared abundance without redistribution.

Core Propositions

Binary economics is distinguished by three related propositions. First, labor and capital are “binary factors of production,” that is, independently productive. Second, technology makes ...

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