BINARY ECONOMIC MODES FOR THE PRIVATIZATION OF PUBLIC ASSETS
By Jerry N. Gauche
Copyright © 2000 by By Jerry N. Gauche
Binary economics offers a new paradigm for economic growth in which the supply and demand sides of the economy are linked through broad-based capital ownership. The recent worldwide pursuit of economic efficiency through the privatization of public assets offers significant opportunities for improving the standard of living in countries that emphasize broad ownership of privatized assets. The author discusses a number of practical tools for privatizing assets in a way that promotes economic growth and improved standards of living.
This article describes a practical approach to privatization, which incorporates the principles of binary economics.
In the privatization of public assets binary economics argues that (1) it matters who owns the privatized capital, (2) access to capital is limited by risk, and (3) capital in concentrations producing income that is not consumed retards economic growth. Consumer Stock Ownership Plans and General Stock Ownership Plans provide means for
rapidly broadening increasing per capita
ownership among the economically disenfranchised,
pursuit of General Stock Ownership (1) political leaders cannot look to
States include initiatives for
broadening capital ownership, (2) eligibility broadened capital ownership can be vexing,
for participation (3) regulation of
in programs broadly held
may raise conflicts between the citizens’ demand for income and tax revenue, and (4) broadly held enterprises can be perceived as
a threat to
status quo. Notwithstanding these issues, the achieving widespread capital ownership through
GSOC remains an effective means of the privatizing of public assets without
The binary approach should be of particular interest to socio-economists because it allows for distribution of income on market principles. Since binary principles are not
the socio-economic community, the article begins with then points out the unique opportunity presented
a brief review of by the present
privatization movement. Finally, combined with privatization.