RE: Introductions, Proposals and News

[Deborah Groban Olson <dgo@esoplaw.com>]

Dear Michael:
        You are doing precisely what is needed. To our knowledge, economists 
have
largely ignored Kelso. Your efforts to make the case, as an economist, will
be extremely helpful. If we can engage the economists in a debate on these
issues, get publicity for the debate and get some experiments started to
test the theories proposed, we will be making serious progress. I am
herewith forwarding you email to the COG Homestead group. As a member of
that group you should feel free send email to all the other Homestead group
members whenever you wish by addressing it to Homestead@cog.kent.edu.

        Do you know anything about or have any opinions about the International
Forum on Globalization? 

        Thanks,
        Deb Olson
At 03:08 PM 9/1/99 -0700, you wrote:
>Deborah,
>Hello. I just finished a rough draft that needs to be vetted here and then
>go through revisions before final publication. As we are swamped here I hope
>it won't take too long. When it is ready it will be on the website.
>
>I'll have to bring up the issue of links to find out how the Institute feels
>about that - I would imagine it would be favorable.
>
>I am supportive of the idea of subsidizing credit for ESOPs but am mindful
>of the long political opposition that Louis experienced on this - after
>reviewing the history of monetary control in America I think it's awfully
>tough to influence central banking policy directly through politics. 
>
>I'm also very favorable to the Stock Quid Pro Quo idea but wonder about the
>political opposition to that as well. It seems that employee ownership has
>been viewed too long as an idea that is anathema to the existing corporate
>structure and my research has sought ways around what I feel is a gross
>misperception. Certainly drawing attention to these proposals through an
>pro-activist agenda can raise their public profile. 
>
>For many years I've grappled with the question of why Kelso's ideas have
>never been widely accepted. I've mostly addressed this theoretically on the
>economic front as my training is in economics, finance, and political
>science. I find neo-classical economists remain the most sceptical on the
>issue of the distribution of capital. I also think the political opposition
>hides behind neo-classical theorists to protect their own interests. 
>
>I am trying to advance the Kelsonian vision is several ways - one by showing
>how risk averse human behavior has shaped 20th century modern liberalism and
>the institutionalized division of capital and labor. If one wants to
>encourage capital appreciation and equity participation one must address
>this instinctual human need for security that has given us the
>institutionalized welfare state. Asset accumulation and diversification
>(ESOPs)is a good way to manage economic risk. In this sense I incorporate
>finance theory as well as experimental evolutionary psychology.
>
>My second approach is to model the feedback process of productiveness that
>Kelso adopted from Say's Law. Equilibrium models cannot accomodate systems
>with complex feedback mechanisms, heterogeneous agents, and variable
>preferences--which characterize reality. To test these ideas one needs new
>tools and I believe agent-based computer simulation models may be most
>useful. The point is to show that in a dynamic model the distribution of
>capital assets is as crucial as the efficient allocation of capital. 
>
>I'm not sure how any of this helps the actice COG agenda in the short run
>but my comparative advantage is to try to support a solid theoretical basis
>for these ideas. I look forward to the interaction in this virtual think
>tank.
>Regards,
>
>Michael Harrington
>The Milken Institute
>mharrington@milken-inst.org
>(310) 998-2699
>
> 
>  
>
>
>-----Original Message-----
>From: Deborah Groban Olson [mailto:dgo@esoplaw.com]
>Sent: Wednesday, September 01, 1999 12:02 PM
>To: Michael Harrington
>Subject: RE: Introductions, Proposals and News
>
>
>Dear Michael:
>
>       Welcome. Is your paper available? Is it on your website? Is the
>Milken
>Institute or your program interested in having mutual hot links with the
>COG website? Would you be interested in putting your paper in our on-line
>library? What do you think of the Kelso idea of opening the Federal Reserve
>discount window for low interest loans to employee owned companies via
>ESOPs, CSOPs, etc? What do you think of the Stock Quid Pro Quo for Gov't
>Largesse idea I sent out recently? Do you have other ideas about solutions
>to capital concentration problem that you would like to share with us?
>
>       Thanks,
>       Deb Olson
>At 03:16 PM 8/31/99 -0700, you wrote:
>>My name is Michael Harrington and I am a political economist in the Capital
>>Studies research division at the Milken Institute (a policy thinktank) in
>>Santa Monica, CA. My area of research is democratization of capital
>>ownership and access to credit. I recently completed the first draft of a
>>policy brief giving an historical overview of the idea of capital access
>and
>>capital ownership in America, from the Jeffersonian ideal to homesteading
>to
>>the ESOP. It is tentatively titled, "Democratizing Capital: An American
>>Tradition." This brief is an  introduction to a continuing research agenda
>>on the economic, political and social effects of broadening equity
>>ownership. 
>>
>>
>>
>>Michael Harrington, Ph.D.
>>The Milken Institute
>>www.milken-inst.org
>>mharrington@milken-inst.org
>>(310) 998-2699
>>
>>
>>-----Original Message-----
>>From: Deborah Groban Olson [mailto:dgo@esoplaw.com]
>>Sent: Thursday, August 26, 1999 1:10 PM
>>To: Homestead
>>Cc: Jim Steiker; Michael Golden; Steve Fischer; Dan Bell; Steve Clem;
>>John Logue; Michael Kreyche
>>Subject: Introductions, Proposals and News
>>
>>
>>Dear Industrial Homestead Group:
>>
>>      Welcome! You are one of 23 people currently subscribed to Homestead
>>listserv part of the Capital Ownership Group.  It would be nice if each of
>>you would send a paragraph or two to the group describing yourself and your
>>interest in Industrial Homestead Policy. To send messages to the Homestead
>>group, email them to homestead@cog.kent.edu.
>>
>>      I have just sent each of you a copy of an email message I sent to
>>Mike
>>Dolan, Deputy Director of Public Citizen's Global Trade Watch. He is the
>>chief organizer of massive demonstrations against the World Trade
>>Organization (WTO)'s meeting in Seattle in November. A huge coalition of
>>groups is working on this mobilization.  While many are going simply to
>>protest, others are working on concrete constructive proposals for the WTO.
>
>>
>>      I believe that the debate on the impact of international trade
>>negotiations is the current arena where our issues can get the most
>>visibility. The situation is very fluid. We have a chance to speak to a
>>broad audience which is hungry for viable ideas.
>>
>>      I am also forwarding to you a message with Shann Turnbull's
>>proposals on a
>>Community Investment Code (CIC) which he has proposed to the Australian
>>government trade negotiators. You may have previsously gotten it and thrown
>>it out during our recent unfortunate spamming problem.
>>
>>      Yesterday, I sent out requests for mutual hot links to various other
>>organization's web sites. One that should be coming on line soon is to the
>>Corporation for Enterprise Development (CFED). www.cfed.org We are now
>>uploading into our on-line library their report on "International Investor
>>Rights and Local Economic Development". It provides a good explanation of
>>the various trade agreements and how they may directly interefere with
>>efforts to anchor capital locally. After discussion with Bob Stumberg, one
>>of the authors, I conclude that any proposals we develop should be worded
>>to fit into international trade agreements in some capacity, at least as
>>potential "green light subisidy" language.
>>
>>      Shortly I will email you my proposed language for a US
>>Constitutional
>>amendment on requiring a quid pro quo from businesses to the common weal
>>for government largesse to said businesses. 
>>
>>      I also have avail a copy of David Spitzley's summary of Louis
>>Kelso's The
>>Capitalist Manifesto, and a debate between Norm Kurland of the Center for
>>Social and Economic Justice (CESJ) and Corey Rosen of the National Center
>>for Employee Ownership (NCEO) on the efficacy of promoting Kelso's idea of
>>opening the Federal Reserve discount window to make capital credit  readily
>>available at cheap rates for ESOPs, CSOPs, etc. If you do not have these
>>items please let me know and I'll send them.
>>
>>      Please start sending in your propsals.  I hope we have enough
>>material to
>>hold real-time on-line discussion in late September or October. If we are
>>to take advantage of the November WTO events in Seattle, we need to get our
>>ideas to each other in September, debate and sort through them in early
>>October, and be ready to present them for discussion as part of a larger
>>popular agenda on world trade by the end of October.
>>
>>Best regards,
>>
>>Deb Olson 
>>Deborah Groban Olson
>>Project Co-ordinator
>>Capital Ownership Group Project
>>Ohio Employee Ownership Center
>>Kent State University
>>3163 Penobscot Building 
>>Detroit, MI 48226
>>(313) 331-7821 or (313) 964-2460
>>(f) (313) 331-2567
>>email: dgo@esoplaw.com
>>web site: http://cog.kent.edu
>>
>

Deborah Groban Olson
Project Co-ordinator
Capital Ownership Group Project
Ohio Employee Ownership Center
Kent State University
3163 Penobscot Building 
Detroit, MI 48226
(313) 331-7821 or (313) 964-2460
(f) (313) 331-2567
email: dgo@esoplaw.com
web site: http://cog.kent.edu