Binary economics

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Binary economics, also known as two-factor economics, is a theory of economics that endorses both private property and a free market but proposes significant reforms to the banking system.^{[citation needed]}

Louis Kelso theorized that widespread use of central bank-issued, interest-free loans to fund employee-owned firms could simultaneously finance economic growth and widen stock ownership in a way which binary economists believe would be non-inflationary.^{[citation needed]}

The term "binary" derived from its heterodox treatment of labor and capital (but not in the sense of binary opposition).^[1] Kelso claimed that in a truly free market wages would tend to fall over time, with all the benefits of technological progress accruing to capital owners.^{[citation needed]}