The Capitalist Manifesto by Louis O. Kelso and Mortimer J. Adler - Summary

Overview

 

The Capitalist Manifesto, co-authored by Louis O. Kelso and Mortimer J. Adler, explores the flaws of traditional capitalism and proposes a new approach called "binary economics." Kelso, an economist, and Adler, a philosopher, argue that traditional capitalism is inherently flawed because it concentrates wealth and power in the hands of a few, leading to economic inequality and societal instability. They propose a new economic system that enables broader participation in capital ownership and benefits all members of society.

Key Points / Ideas

 

1. The Concentration of Capital Ownership: The authors contend that traditional capitalism concentrates capital ownership among a small group of individuals or corporations, leading to wealth inequality and social instability. They argue that widespread ownership of capital is essential for a healthy and sustainable economy.

2. Binary Economics: Kelso and Adler propose a new economic system, dubbed "binary economics," that aims to overcome the concentration of capital ownership. The key idea of binary economics is to enable every citizen to have access to capital ownership and to participate in the ownership of productive enterprises through mechanisms such as Employee Stock Ownership Plans (ESOPs).

3. Expanded Capital Ownership: The authors argue that expanding capital ownership to all citizens will not only reduce wealth inequality but also stimulate economic growth and promote social harmony. They provide examples of successful implementation of binary economics, such as the Kelso Plan, which helped workers acquire ownership in their companies and share in their success.

Conclusion

 

The Capitalist Manifesto offers a thought-provoking critique of traditional capitalism and proposes an alternative economic system that aims to address the flaws of wealth concentration and inequality. Kelso and Adler present a compelling argument for expanding capital ownership to all members of society, which they believe will lead to a more equitable and prosperous future.

The Capitalist Manifesto is a seminal work that challenges mainstream economic beliefs and provides a blueprint for a more inclusive and democratic economic system. Readers interested in exploring alternative economic theories and solutions to wealth inequality should consider delving into this book. Other related works that complement this book's ideas include Thomas Piketty's Capital in the Twenty-First Century and Gar Alperovitz's What Then Must We Do?