The New Capitalists: A Proposal to Free Economic Growth from the Slavery of Savings

Title......Page 1
1 – Introduction and Definition of Terms......Page 2
A. Wealth......Page 5
B. Savings......Page 6
D. Capitalists......Page 7
2 – Traditional System of Financing New Capital Formation......Page 8
3 – Function of Savings in the Financing of Capital Formation......Page 13
A. Concentration of Ownership of Capital......Page 19
B. Denial of Access to Capital......Page 26
C. Inflation......Page 28
D. Loss of Incentive......Page 30
E. Price Disavantage in International Trade......Page 31
F. Political Disadvantage in World Affairs......Page 32
G. Restriction of Economic Growth......Page 34
5 – Capital Financing without Resort to Savings......Page 39
A. Financed-Capitalist Plan......Page 41
Chart 1: Financing arrangements of the financed-capitalist plan......Page 44
Chart 2: How capital instruments play for themselves under the financed-capitalist plan......Page 45
B. Capital Diffusion Insurance......Page 46
C. Financed-Capitalist Plan and Power Diffusion for a Free Society......Page 47
6 – Policy Considerations in Granting Loans under the Financed-Capitalist Plan......Page 50
A. Anti-Monopoly Policy......Page 51
B. Promotion of Technological Improvement......Page 52
C. Increase in Capital-Owning Households......Page 53
E. Investment Preferences for New Capitalist Estates......Page 54
F. Prevention or Discouragement of Speculation in Stocks......Page 55
G. Co-Ordination of Consumer Demand and New Capital Formation......Page 56
H. Inflation Control and Concurrent Reduction of Consumer Credit......Page 57
I. Encouragement of Equity Financing and Discouragement of Debt Financing......Page 58
J. Personal Aptitudes and Educational Requirements......Page 59
7 – The Function of the Investment Banker under the Financed-Capitalist Plan......Page 65
A. Underdeveloped Economies......Page 69
B. Elimination of Restrictions on Economic Growth......Page 71
9 – Significance of the Financed-Capitalist Plan: Reversing the Trend toward Socialism and Building a Capitalist Economy......Page 74
Louis O. Kelso......Page 77
Mortimer J. Adler......Page 78