binary economics

[Dan Bell <dbell@kent.edu>]

I am no expert in Kelso. I would request some clarification on
the term binary economics. As presented by David Ellerman, it seems
to represent the fact that Y = K^alpha L^(1-alpha), both capital
and labor contribute to total output.

However, I thought binary economics was based on Kelso's idea that
broad ownership allows supply and demand to grow evenly.
As a larger percentage of income is distributed according to
capital rather than labor, broad ownership would ensure that
a broad population of consumers had sufficient income to create
a corresponding demand.

Furthermore, an increase in productive capital would increase
output by X. Since the additional income of X would be broadly
distributed, demand would also increase by X. Thus this binary
process allows for much higher rates of growth because increases
in demand are driven directly by increases in supply.

Can someone clarify to what "binary" was intended to refer?

Thanks

Dan Bell