ESOPs: An Historical Perspective

Research Articles

Recommended Reading

Recommended Reading

Selected Items

• The Capitalist Manifesto, by Louis O. Kelso and Mortimer J. Adler, Random House, New York: 1958; reprinted Greenwood Press, Westport, Connecticut: 1975. Also published in French, Spanish, Greek and Japanese.

• The New Capitalists, by Louis O. Kelso and Mortimer J. Adler, Random House, New York: 1961; reprinted Greenwood Press, Westport, Connecticut: 1975. Also published in Japanese.

• Two-Factor Theory: The Economics of Reality, by Louis O. Kelso and Patricia Hetter, Random House, New York: 1967; paperback edition, Vintage Books: 1968. (Originally published under the title How to Turn 80 Million Workers into Capitalists on Borrowed Money.) Also published in Spanish and German.

• Democracy and Economic Power: Extending the ESOP Revolution Through Binary Economics, by Louis O. Kelso and Patricia Hetter Kelso, Ballinger Publishing Co., Cambridge, Massachusetts: 1986; reprinted by University Press of America, Lanham, Maryland: 1991. Also available in Russian and Chinese.

Writings by Louis O. Kelso

• "Karl Marx: The Almost Capitalist." American Bar Association Journal, March, 1957.

• "Corporate Benevolence or Welfare Redistribution"? The Business Lawyer, January, 1960.

• "Labor’s Great Mistake: The Struggle for the Toil State." American Bar Association Journal, February, 1960.

• "Welfare State - American Style." Challenge, The Magazine of Economic Affairs, New York University, October, 1963.

• "The Case for the 100% Dividend Payout." Trends (published by Georgeson & Co.), New York, December, 1963.

• "Poverty and Profits." Hostetler, Kelso, Long, Oates, the Editors, Harvard Business Review, September-October, 1964.

• "Beyond Full Employment." Title News (the Journal of the American Land Title Association), November, 1964.

• "Cooperatives and the Economic Power to Consume." The Cooperative Accountant (published by the National Society of Accountants for Cooperatives), Winter, 1964.

• "Why Not Featherbedding"? Challenge, September-October 1966. (Reprinted in American Controversy: Readings and Rhetoric, by Paul K. Dempsey and Ronald E. McFarland, Scott, Foresman and Company, Glenview, Illinois: 1968.)

• "The Economic Foundation of Freedom." The American Prospect: Insights into Our Next 100 Years, Houghton Mifflin Company, Boston: 1977.

• "Labor’s Untapped Wealth: An Address by Louis Kelso." Air Line Pilot, October, 1984.

Writings by Louis O. Kelso and Patricia Hetter Kelso

• "Uprooting World Poverty: A Job for Business." Business Horizons, Fall, 1964. (Reprinted in Mercurio, Anno VIII, No. 8, Rome, Italy, August, 1965; Far Eastern Economic Review, Vol. L, No. 1, Hong Kong, October, 1965. Winner of the First Place 1964 McKinsey Award for Significant Business Writing.)

• "Poverty’s Other Exit." North Dakota Law Review, January, 1965.

• "Equality of Economic Opportunity Through Capital Ownership, Social Policies for America in the Seventies." edited by Robert Theobald, Doubleday & Co., New York: 1968. (Excerpts from this essay reprinted in Current, April, 1968.)

• "Reparations and the Churches." Business Horizons, December, 1969.

• "Invisible Violence of Corporate Finance." The Washington Post, June 18, 1972.

• "Man Without Property." Business and Society Review, Summer, 1972.

• "Corporate Social Responsibility Without Corporate Suicide." Challenge, July-August, 1973.

• "Employee Stock Ownership Plan." Business & Government Insider Newsletter, July 30, August 6 and August 13, 1973.

• "Employee Stock Ownership Plans: A Micro-Application of Macro-Economic Theory." The American University Law Review, Spring, 1977.

• "The Greatest Financial Planning Tool of All . . . Could ESOP Save General Motors?" The Financial Planner, November, 1981.

• "Sychophantasy in Economics: A Review of George Gilder’s Wealth and Poverty." The Great Ideas Today, Encyclop?dia Britannica, Inc., Chicago: 1982.

• "The Right to Be Productive." The Financial Planner, August and September, 1982.

• "Tax Reform Is Not the Answer." Chief Executive, Spring, 1983.

• "How We Can Achieve Lifetime Employment." Chief Executive, Autumn, 1983.

• "Damning Binary Economics With Faint Praise." Workplace Democracy, Summer, 1987.

• "Leveraged Buyouts Good and Bad." Management Review, November, 1987.

• "The Great Savings Snafu." Business and Society Review, Winter, 1988.

• "Why Owner-Workers Are Winners." The New York Times, January 29, 1989.

• "Why I Invented the ESOP LBO." Leaders, October/November/December, 1989.

• "Don’t Meddle With ESOPs." The Journal of Commerce, October 2, 1989.

• "Looking in a Marxist Mirror." The Journal of Commerce, January 11, 1991.

Also Recommended Books

• "Curing World Poverty: The New Role of Property." Edited by John H. Miller, C.S.C., S.T.D., Social Justice Review, St. Louis: 1994.

• "Binary Economics: The New Paradigm." Robert Ashford and Rodney Shakespeare, University Press of America, Lanham, Maryland: 1999.

Also Recommended Writings

• "The ESOP According to Kelso." Stuart Nixon, Air Line Pilot, October, 1984.

• "The World According to Kelso." Steven Hayward, Inland Business, April, 1987.

• "Louis Kelso, Capitalist.? Bill Moyers: A World of Ideas II, edited by Andie Tucher, Doubleday, New York: 1990.

• "The Binary Economics of Louis Kelso: The Promise of Universal Capitalism." Robert H. A. Ashford, Rutgers Law Journal, Vol. 22, No. 1, Fall, 1990.

• "Louis Kelso’s Binary Economy." Robert Ashford, The Journal of Socio-Economics, Vol. 25, No. 1, 1996.

• "Binary Economic Modes for the Privatization of Public Assets." Jerry N. Gauche, The Journal of Socio-Economics, Vol. 27, No. 3, 1998.

• "A New Market Paradigm for Sustainable Growth: Financing Broader Capital Ownership with Louis Kelso’s Binary Economics." Robert Ashford, Praxis: The Fletcher Journal of Development Studies, Vol. XIV, The Fletcher School of Law and Diplomacy, Global Development and Environment Institute, Tufts University, Medford, Massachusetts: 1998.

• "The Theory of Productiveness: A Microeconomic and Macroeconomic Analysis of Binary Growth and Output in the Kelso System." Stephen V. Kane, The Journal of Socio-Economics, Vol. 29, No. 6, 2000.

• "The Ultimate Management Team." Chris Bayers, WIRED, January, 2002.

• "Employee Ownership and Corporate Performance: A Comprehensive Review of the Evidence." The Journal of Employee Ownership Law and Finance, Vol. 14, No. 1, National Center for Employee Ownership (NCEO), Oakland, California: 2002.

• "Binary Economics, Fiduciary Duties, and Corporate Social Responsibility: Comprehending Corporate Wealth Maximization and Distribution for Stockholders, Stakeholders, and Society." Robert Ashford, Tulane Law Review, Vol. 76, No. 5-6, June, 2002.

Also of Interest

• The New Owners. Joseph Blasi and Douglas Kruse, HarperCollins Publishers Inc., New York: 1991.

• The Great Game of Business. Jack Stack, Doubleday, New York: 1992.

• Open-Book Management: The Coming Business Revolution. John Case, HarperCollins Publishers, New York: 1995.

• One World, Ready or Not: The Manic Logic of Global Capitalism. by William Greider, Simon & Shuster, New York: 1997.

• Participatory Employee Ownership: How It Works. John Logue, et al., Worker Owner Institute, Kent State University, Kent, Ohio: 1998.

• On the Way To Successful Employee Ownership. Warren L. Braun, Harrisonburg, Virginia: 2000.

• Jobs & Fairness: The Logic and Experience of Employee Ownership. Robert Oakeshott, Michael Russell (Publishing) Ltd., Wilby, Norwich, England: 2000.

• A Stake in the Outcome. by Jack Stack and Bo Burlingham, Currency, New York, New York: 2002.

ESOP Association
NCEO Kelso