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Ashford and Shakespeare should be congratulated for recognizing Louis Kelso as a major contributor to economic theory and the architect of a unified system of economics. Kelso's system, first articulated in his 1958 classic THE CAPITALIST MANIFESTO co-authored with philosopher Mortimer Adler, combines the elegance of classical market theory and moral philosophy with the highest spiritual values. Ashford and Shakespeare pinpoint where Adam Smith, Karl Marx, and John Maynard Keynes fell short theoretically by not recognizing the increasing productiveness of capital as the main source of economic growth and the most logical source of widespread income distribution. This conceptual omission is embedded in all conventional schools of economic thought, from left to right. Consequently, few economic theorists can ever make accurate predictions about the future or offer sound long-range solutions to meet the dangers of economic globalization.
Binary economics states that in a genuinely free market economy, people should be able to contribute to and gain their incomes from the economic process, based on both their labor and their capital inputs. Most neo-classical and Keynesian economists would dismiss this postulate as absurd, asserting that capitalism already operates this way. Louis Kelso and the authors of BINARY ECONOMICS, however, show that institutional barriers to broad-based ownership limit most people to earning their incomes through their labor alone. Consequently the market system breaks down, as government is forced to interfere with the market mechanism and redistribute incomes to non-owning working people and the unemployed.
The authors explain why neither Wall Street capitalism nor the many versions of socialism can ever achieve economic or social justice. Ashford and Shakespeare argue that so-called "free market" policies alone cannot achieve sustainable growth, and explain why the wealth gap continues to widen dangerously between nations and between the rich and poor within all nations. They point to a system beyond capitalism and socialism that provides every person, as a fundamental right of citizenship, with equal access to capital credit and other "social goods" needed to become owners of capital. Their new paradigm provides:
--a new understanding of the relationship between humans and things as they work together to produce goods and services;
--a new explanation for industrial growth, poverty and affluence; and
--a new strategy for achieving general affluence for all people on free market principles.
Few people would disagree with the authors that the so-called "free market" would be better termed the "un-free market." As they point out, a free and open market cannot work efficiently or justly under conditions where (1) workers have only their labor to sell in a free global marketplace, (2) ownership of productive capital globally is concentrated into the hands of a small ownership class, (3) the productive efforts and labor incomes of propertyless workers remain threatened globally by labor-displacing technology and by workers willing to accept lower wages, and (4) exclusionary barriers to more equal ownership opportunities remain in our laws and institutions.
The strength of this readable book is its sharp focus on economic theory. The book touches only lightly on the moral and political dimensions of binary economics. For a deeper discussion on those issues, the reader should turn directly to Kelso's writings and to the compendium of articles (including one by Kelso and another by Ashford) presented in the book, CURING WORLD POVERTY: THE NEW ROLE OF PROPERTY, John H. Miller, ed., published in 1994 by Social Justice Review (St. Louis).
To move toward the goal of general affluence within the new ownership paradigm, the authors advocate a "binary infrastructure" including principled yet practical social policies and "social tools," such as:
--"constituency" vehicles, like ESOPs, using tested principles of corporate finance to connect all citizens to capital credit as a new and fundamental right of citizenship;
--a tax system and corporate policies that encourage the full payout of corporate profits;
--capital credit insurance and re-insurance as a substitute for collateral; and
--a flexible but disciplined monetary policy which liberates future growth from the slavery of past savings.
I wholeheartedly endorse this book as required reading for all serious and open-minded students of economics. It is especially valuable for all policymakers who have not yet become, in the words of Keynes, unwitting "slaves of some defunct economist."
ABOUT THE REVIEWER: Mr. Kurland, a lawyer-economist and president of the Center for Economic and Social Justice was Louis Kelso's Washington-based political strategist for 11 years, following years of work in civil rights and the War on Poverty. In 1974, he and Kelso persuaded Senator Russell Long to champion legislation to promote employee stock ownership plans or "ESOPs." Among the expanded ownership models Kurland designed was the world's first 100% leveraged ESOP buyout, and the first ESOP in a developing country. Mr. Kurland was appointed by President Reagan in 1985 as deputy chairman of the bipartisan Presidential Task Force on Project Economic Justice, formed to promote Kelsonian reforms in US assistance programs to developing economies.
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Informed hobbits have known for quite some time that there have been serious issues of legitimacy and integrity surrounding the writings and literary legacy of CS Lewis, close friend and fellow Inkling of our own great Professor. In this volume, Mrs. Lindskoog traces the history and lineage of Lewis' literary legacy and demonstrates that there has, in all likelyhood, been a great deal of fraud and deceit practiced upon lovers of Lewis by a number of individuals who should have known better.
This hobbit can only hope that Mrs. Lindskoog's book quickly returns to print and is widely read and disseminated among those of our fellows who truly loved Mr. Lewis and respected his legitimate work.
Lindskoog pins down, through incredible academic detective work, what many of us suspected for some time, but were unable to voice or prove, namely, that Lewis's "literary executors" have tried (and in many cases succeeded) in pulling the wool over our eyes!
Lindskoog has demonstrated that many of the quaint little stories about bonfires, lost manuscripts, personal secretaries, etc. have, in many cases, been outright fabrications foisted on an unsuspecting public. It's a shame that in the confusion following Lewis's death, a better executor could not have been found; perhaps, if this had been the case, much trouble would have been averted.
Well, it's all water under the bridge now. The truth is out there, and real Lewis scholars know what it is. Dr. Hooper and his cronies have been thoroughly discredited. Now if only he would quit writing introductions. . .
Predictable results occurred. This person wielded power over publishers who made huge profits from the books. He had the power to say which academics had access to certain Lewis archives and which got permission to quote Lewis. The publishers had to include this person's book introductions in which he rewrote himself in a favorable light into history. Ambitious specialists needed to agree with the claims. One such claim was that this person was Lewis' live in, full time, private secretary for several years. This person also "discovered" many unknown Lewis literary works and revisions of existing works that were significantly lower in literary quality than the original, known Lewis literature and in some cases contained religious and ethical themes that were the exact opposite of Lewis' adamantly held views.
In this book Kathryn Lindskoog does a thorough job of investigative journalism in deflating much of the rewritten history and "new" Lewis works with documentary evidence and eye witness accounts. This book reads much like a Chapman Pincher espionage expose. This book attracted much attention, and further eye witness accounts and leads to more documentary evidence and was followed by a second book, "Light in the Shadow Lands," five years later.
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We have selected it as the November 2002 Featured Selection for Transforming Education Bookstore and highly recommend it.
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Harry Levinson, Chair, The Levinson Institute
Harrison Gough, Ph.D., Director (1978-83), Institute of Personality Assessment and Research, University of California, Berkeley
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Clapp presents an odd but appealing mixture of Reformed, Anabaptist, and postmodern perspectives. He crosses boundaries of liberal and conservative, traditional and postmodern, historic and contemporary. If you like closed, neatly defined categories of what is acceptable for the church you won't like this book. But if you want a book that presents and radical (but historic) vision of what the church should be then I highly recommend this book.