The End of Private Equity Firms? No Way!

A few years back a member of the CESJ board of directors expressed concern over the Economic Democracy Act and the necessity of shifting new capital formation from past savings to future savings.  There was also the issue of phasing out governments monetizing deficits by emitting bills of credit (the constitutional form of “creating money” out of nothing).

JTW Podcast: Labor’s Great Mistake

The full title of this podcast is “Labor’s Great Mistake: Rethinking Full Employment in a Capitalist Society.”  In this video, we explore Louis O. Kelso's seminal 1960 article, “Labor's Great Mistake: The Struggle for the Toil State.”  In the face of the fixed belief human labor is the only true factor of production and thus a “job” is the only way to gain income, Kelso argues against the conventional wisdom that full employment is an ideal societal goal.

News from the Network, Vol. 18, No. 20

Although some of the experts seem to be acting as if everything is going to be fine, this week’s news items suggest disaster is in the offing and it’s only a matter of time.  We, of course, think that adopting the Economic Democracy Act: will go a long way to correcting the problem and providing a foundation for genuine sustainable growth:

Where is Pope Leo XIV Coming From?

The election of a new pope has repercussions far beyond the Catholic Church, Christianity, and even all religion.  Especially since the Catholic Church became a truly international organization with the loss of the Papal States in the 19^th century, people of goodwill everywhere look to the head of the Catholic Church as a voice for good, even if they do not always agree with what he says.

JTW Podcast: A Martyr to Economic Justice

Today’s podcast is more than a little different from what we’ve been presenting.  It is an original twelve-and-a-half-minute video about Blessed Pauline Jaricot, a nineteenth century “martyr” to economic justice.  Anticipating the work of Pope Leo XIII which the new pope, Leo XIV, has taken as his guide, Pauline struggled to achieve justice for the working classes of her day.

News from the Network, Vol. 18, No. 19

While the world situation seems to be getting more surreal by the hour, at least there may be a break coming with the election of a new pope . . . who might be open to hearing about the Economic Democracy Act:

Egocentrism, Tariffs, and the Single Tax, Part IV

Concluding our discussion of tariffs, as we noted previously there are three badly flawed economic principles which many people hold as absolute, unquestioned dogmas.  Two of these flawed principles are general, but applied specifically in the third, regarding tariffs, which we looked at last week.  The principles are:

JTW Podcast: The Case for 100% Dividend Payout

If there is one thing which upsets people enmeshed in the fallacy Louis O. Kelso called “the slavery of [past] savings, it’s the systemic necessity of full dividend payout if Say’s Law of Markets is to be restored.  In this article, Kelso recommended changes such as corporations paying out 100% of earnings as tax-deductible dividends.

Paying out all earnings would force corporations to compete in the market for new capital rather than retain earnings as reserves for expansion — concentrating ownership in fewer and fewer hands, distorting market equilibrium.

The audio-visual presentation was created in “Descript”, using an AI-generated voice for narration. Visit CESJ.org for more information.

News from the Network, Vol. 18, No. 18

With the political chaos being spread by the current administration in Washington, it is difficult to discern what principles are driving policy decisions — if any.  This makes the case for the adoption of the Economic Democracy Act even more urgent:

Egocentrism, Tariffs, and the Single Tax, Part III

As we noted in the first posting on this subject, there are three badly flawed economic principles which many people hold as absolute, unquestioned dogmas handed down from . . . well, it’s not entirely clear where they come from.  In any event, that’s not important when one’s own ego and self-interest are the only fixed points in the universe.

JTW Podcast: Binary Economics in a Nutshell

This article by Norman Kurland presents the basic components of what Louis Kelso called "Binary Economics", that the factors of production can be identified as either Labor or Capital.

News from the Network, Vol. 18, No. 17

As the economic and financial world descends deeper into utter chaos, it becomes increasingly difficult to select news items that even make sense.  Of course, we want to see the adoption of the Economic Democracy Act, but the question is when the powers-that-be will realize its wisdom:

Egocentrism, Tariffs, and the Single Tax, Part II

Last week we looked at how a distorted idea of one’s own importance can lead to treating anyone who opposes you as an enemy to be eliminated, and supporters as tools to be discarded once their utility is over.  This week we look at the implications of the Ricardian (as opposed to the Smithian) Labor Theory of Value.

JTW Podcast: Kelso Before the Citizens’ Crusade Against Poverty

Louis Kelso made this Statement before the Forum on Economic Policy and Poverty, Citizens' Crusade Against Poverty, 2nd Annual Meeting-April 13-14 1966.

News from the Network, Vol. 18, No. 16

As time goes on, it becomes increasingly difficult to find news items that can be understood as anything rational, whether we’re talking economics, politics, or war, which is the failure of politics.  Naturally, we believe the solution to all of this is to adopt the Economic Democracy Act, but the problem is to get the powers-that-be to realize it:

Egocentrism, Tariffs, and the Single Tax, Part I

Understanding certain of today’s trade policies, while difficult, even baffling at times, is nevertheless possible once one identifies some basic assumptions and ascertains a possible approach to life.  Although he didn’t write it, The Art of the Deal (1987) under President Trump’s name exemplifies an orientation which appears widespread today, as do some of his otherwise incomprehensible actions, possibly accounting for his popularity.

JTW Podcast: Questions on Kelso’s Second Income Plan

The full title of today’s podcast is “Questions Most Often Asked About Louis Kelso’s Second Income Plan,” a question-and-answer paper Kelso developed about his “Second Income Plan” back in the 1960s.

News from the Network, Vol. 18, No. 15

 As they say in the journalism biz, no news is good news . . . and none of the news items we have this week are good, and not even all that new.  It has become a depressing and endless round of trying to figure out what a certain U.S. president has done and what he is going to do next and then reverse himself completely before he throws his next ally under the bus so fast you can hear the bones crunch and then goes back to whatever he was doing in the first place.  Or second.  Would you believe third?  Why doesn’t Congress adopt the Economic Democracy Act so the rest of us can get back to real life and the rich and powerful can perform their antics for our entertainment instead of to our detriment:

Dignity, Sovereignty, Faith, and Reason

In today’s posting, we’re taking a look at some basic principles of the Just Third Way of Economic Personalism.  As we understand it, the Just Third Way begins and ends with the dignity and sovereignty of the human person. Any plan, program, activity, or thought contrary to or which undermines the dignity or sovereignty of the human person must be rejected or reformed to the point where it either enhances human dignity or at least does no material harm.

JTW Podcast: Uprooting World Poverty: A Job for Business

Today’s podcast is an essay by Louis Kelso and Patricia Hetter Kelso in which the Kelsos conclude that reimagining capital finance—not charity—can break poverty cycles while preserving democratic ideals. Their plan leverages market tools to broaden ownership, arguing that “industrial power to produce” must align with “economic power to consume” for sustainable development. The authors propose financing industrialization via future savings instead of past capital accumulation.

News from the Network, Vol. 18, No. 14

On July 27, 1923, during the chaos at the height of the German hyperinflation, Germania, a large Berlin newspaper, editorialized, “It is a situation for a dictator.  The conditions call for a Mussolini in bullet-proof armor with a revolver in either hand.”  Unfortunately, that’s exactly what they got, only worse.  Not that we’re saying the rise of a new Hitler is inevitable . . . if people can organize and demand the adoption of the Economic Democracy Act as soon as possible.  Otherwise, we can expect more of this sort of thing:

Personalism and Justice

Recently we got an enquiry regarding a misunderstanding about our use of the term “Economic Personalism” and some potential confusion with the virtue of justice.  Someone (Person A) had expressed disagreement with our using the term Economic Personalism to describe a type of economic democracy and then asked if we were trying to change the name of the Center for Economic and Social Justice to the Center for Economic Personalism.  Quick answer: No.

JTW Podcast: Economic Justice in the Age of the Robot

Today’s podcast is an essay by Norman G. Kurland which explores the “Just Third Way’s” philosophical and practical foundations of economic justice in an era of technological advancement. It argues for systemic reforms to democratize ownership and empower individuals. The article frames widespread property ownership as essential for political democracy and lasting economic equity and urges institutional reforms to align with these principles.

News from the Network, Vol. 18, No. 13

Evidently the new word to describe the current economic policy climate is “chaotic.”  We think that this is due most immediately to President Trump’s policies, although in the greater scheme of things it’s due to Keynesian economics.  In general, the solution is to adopt the Economic Democracy Act, but a little common sense wouldn’t hurt: