Book Chapter – Completing the Cycle

22 03 2021

A new co-authored book chapter – with Prof. Shyam Ranganathan – entitled “Completing the Cycle: An Inclusive Capitalism Approach Linking Sustainable Consumption and Production,” has just been published in Sustainable Consumption and Production, Volume I: Challenges and Development.


In this chapter, we present an inclusive capitalism approach, which completes the environmental-production-income and distribution-consumption cycle by treating sustainable consumption and production as two sides of the same coin. There are two divides that our approach to inclusive capitalism bridges—one between income earned from capital ownership and from wages, and the other between the human production of goods and services and the impact these activities have on the environment. We analyse different mechanisms to bridge these divides and show that our proposal—broadening the distribution of capital ownership using future earnings of capital and directing this income towards sustainable production and consumption—presents a holistic solution to growing environmental problems and income inequality. In addition, we also achieve the politically desirable goal of participatory economic life through this mechanism.

2020 Beyster Symposium

18 06 2020

On Tuesday, June 23, from 9:00 to 10:30am (EDT), I will be participating in the online (and open access) 2020 Beyster Symposium. The purpose of the symposium is to study broad-based forms of capital ownership and capital income such as employee stock ownership, equity compensation, profit sharing, gain sharing, and worker cooperatives in the corporation.

During my session at the symposium – which focuses on “UBI, Taxation, and the Environment,” a recording of my presentation will be released and the panelists in the session will be available in the chat feature of the conference platform to answer any questions you might have on our presentations or papers.

To join my session, go to and select Room 2 at 9:00am on June 23.

All of the material prepared for the symposium can be accessed via this dropbox site.

I will be presenting a co-authored paper entailed “Universal Basic Income and Inclusive Capitalism: Consequences for Sustainability.” My Prezi presentation can be accessed via this link.

The Story Behind the Paper

2 09 2019

As with most journal articles there is a story behind the work, but these are rarely told. In this post, I thought I’d share why we wrote our paper entitled Universal Basic Income and Inclusive Capitalism: Consequences for Sustainability.

Over the past two decades, I have worked closely with Prof. Nicholas Ashford, Prof. Robert Ashford, and Charles Caldart to identify strategies that could transform the industrial state towards sustainability. This research has resulted in two editions of our textbook entitled Technology, Globalization, and Sustainable Development. While the scope of this work is vast, at its core is how regulation/policy, innovation, and new economics can be leveraged to create an environment for disruptive change towards sustainability.

When we started this collaboration, the trends in income inequality were clear, but the national/international conversation related to using some form of universal basic income to address inequality was limited. Following the 2008 global financial crisis, this situation started to change, as did the conversation about the role of automation/AI in displacing well-paid employment opportunities.

We have long argued for the need to consider “employment” as a fundamental, but frequently overlooked, aspect of sustainability, which is why we put the words Environment, Economy, and Employment on the front cover of the textbook. What many people may not realize (without a careful read of the textbook) is that we view employment from two perspectives – (1) traditional employment that provides people with an income from their labor and (2) employment of the capital they may own that also provides an income.

Given our focus on employment, we have been tracking how technology (think automation, digital technology, software, AI, robotics, etc.) has been reshaping work and what this means for the idea of full-time, well-paid work. The first section of the new paper presents some of these trends, especially related to the hollowing out of the middle class in the US and many OECD nations.

The second section of the paper looks at the macro environmental challenges we face and raises a critical question. If we advance a scientifically-optimistic “efficiency” agenda (i.e., do much more with much less) to address environmental problems, is this approach likely to result in less well-paid jobs? We believe this could be the case. As knowledge/skills are continually embodied into more advanced forms of capital (technology, AI, etc.), the ability of labor to claim its share of the work being done (what we call productiveness; which is not the same as labor productivity) declines. It is also important to add that while the total number of jobs may actually remain the same or increase, what we are focusing on is what is doing the work and what this means for income (i.e., income from labor and from technology/real capital ownership).

The implications from this understanding of the economy point to some challenging questions. For example, if human knowledge and skills (especially, routine manual and cognitive tasks) are being embodied in technology/real capital, the question of who or what is really doing the value-added work becomes important. It also raises uncomfortable questions about the ability of workers to claim a greater share of the wealth being created, if the majority of the work being done (value being added) comes from the technology/real capital side of the equation.

Over the years, I have tried various ways to explain what is a set of complex and interconnected ideas, but during a conversation I had with our new Dean in 2017, I found a “two ice hockey stick” analogy to be useful. Put simply, both hockey sticks represent curves of the two most pressing issues of our time, increasing inequality and increasing environmental problems. As mentioned above, the typical set of solutions to environmental problems is to essentially do more with less through efficiency/advanced technology (the scientifically optimistic solution to unsustainability). The problem is that as the capability of technology grows, its ability to capture value-added aspects of work also grows. Thus, the environmental solutions adopted may worsen inequality as the number of well-paid jobs declines.

A different problem is revealed if we only consider the inequality ice hockey stick (the inequality challenge) and its potential solutions. For example, if the solution to inequality is to provide everyone with some form of basic or guaranteed income, this raises an important question about what this surge in effective demand (i.e., consumption) would mean for the environment. Hence, both ice hockey stick curves need to be addressed at the same time, in a holistic and integrated way.

During my conversation with Dean Richard Blythe, I used the two ice hockey stick analogy to explain my current research agenda, which led to an invitation to join the Dean, Enric Ruiz-Geli, and Marcelo Stamm for the first Dean’s Discussion focused on Innovation Ecologies. My main remarks in the video of this conversation (below) run from minutes 7-14. Interestingly, the Dean’s Discussion and engagement with Enric and Marcelo helped expand my thinking to include the importance of architecture, but not in the traditional sense related to the artistic design, engineering, and construction of buildings. Rather, in relation to the ‘financial’ architecture behind the construction and ownership of buildings/infrastructure, and what this means for inequality and the ability of community members to participate and engage in the use of newly developed facilities/space. More on this below.

Around the same time as the Dean’s Discussion, I read Andrew Yang’s new book – The War on Normal People – which provides a data-rich description of how technology/AI is displacing jobs in America. Yang’s solution to this problem is to provide every citizen over the age of 18 with $1,000 a month, which is now commonly known as the Freedom Dividend. As my Tweet to Yang below highlights, while our understanding of the inequality challenge is the same, Yang’s book did not mention the environmental problems that may accompany a surge in effective/aggregate demand. Hence, the idea for a paper was born that connects the inequality and environmental challenges (the two ice hockey sticks) with an economic theory that understands the ability of capital to do work (like labor) and addresses inequality through its broad ownership.

For those outside of academia, one of the best ways to advance an idea is to share, discuss, and debate it at academic conferences. Fortunately, two opportunities arose. The first was a conference at Oxford University on Endogenous Growth, Participatory Economics, and Inclusive Capitalism, and the second was the 12th Biannual Conference of the Canadian Society for Ecological Economists (CANSEE) in Waterloo. Both of these conferences helped define the boundaries of the paper and allowed me to experiment with different ways of communicating key ideas such as the two ice hockey sticks. My CANSEE conference presentation is provided below.


A video of my CANSEE presentation can be accessed by clicking on the image below. [Note: select the fifth video from the top of the list on the right of the screen, which has a graph behind the play icon.] My presentation starts at minute 29; however, I recommend first listening to Prof. Jennifer Clapp’s presentation on “Financialization and its Sociological Effects.” Her research reveals the rapid growth of financialization and its implications for the social and biophysical world. I would argue it also makes a powerful case for rethinking how we consider the architecture of financial investments/arrangements and what this means for ‘real’ capital ownership, inequality, and environmental sustainability.

The several month timeframe of the conferences provided a window to search for UBI proposals to incorporate into the paper. A keen eye will spot eight UBI proposals in the CANSEE presentation, but our final paper included 14 UBI proposals alongside a proposal for a federal work program. When reviewing each of these proposals, our attention focused on the rationale behind the programs, how they would be financed, who would be illegible for funds (e.g., was there a work or age requirement), how much people might receive, and whether the programs had any connection to the environment. What was illuminating was the sheer diversity of ideas and how the ideological framing of the inequality problem tended to dictate the solution. For example, those who view work as essential for individual/social well-being tended to advance a conditional UBI (i.e., the basic income is received if the recipient is working). In contrast, those who view inequality as a product of the current economic system tended to advance an unconditional UBI (i.e., the income is received regardless of the recipient’s employment status).

What the writing of this paper revealed is the need for additional articles that describe how the Binary Trust would function, what a government-backed inherently sustainable corporate investment certification system might look like, and what needs to change for sustainability investments to look promising from a return on investment perspective. From an advancement of knowledge perspective, I’m looking to collaborate with colleagues in architecture/engineering who are interested in exploring how the financial architecture behind their developments could transform the use of their architectural/engineering designs. The basic idea is to integrate the visible (physical) and invisible (financial) components of architecture in ways that enrich society and the biophysical world.

Given Yang’s connection to the genesis of this paper, it seemed fitting to show how a binary economics approach to inclusive capitalism could be implemented alongside his UBI proposal. Another important argument of the paper is how this system needs to be focused on inherently sustainable investments. Put simply, the paper advocates an approach to addressing both ice hockey sticks at the same time and in an integrated, holistic way.

A week before the final article was published, Elon Musk endorsed Andrew Yang as his pick for the next U.S. President. Thus, I decided to launch the release of the paper with the following tweet.

New Paper in Sustainability

19 08 2019

Our new paper that considers how to advance a universal basic income with a new approach to inclusive capitalism was published in Sustainability. There is an interesting story behind this paper that I will write about in a separate post. More soon …

Universal Basic Income and Inclusive Capitalism: Consequences for Sustainability


Over the past forty years, income growth for the middle and lower classes has stagnated, while the economy (and with it, economic inequality) has grown significantly. Early automation, the decline of labor unions, changes in corporate taxation, the financialization and globalization of the economy, deindustrialization in the U.S. and many OECD countries, and trade have contributed to these trends. However, the transformative roles of more recent automation and digital technologies/artificial intelligence (AI) are now considered by many as additional and potentially more potent forces undermining the ability of workers to maintain their foothold in the economy. These drivers of change are intensifying the extent to which advancing technology imbedded in increasingly productive real capital is driving productivity. To compound the problem, many solutions presented by industrialized nations to environmental problems rely on hyper-efficient technologies, which if fully implemented, could further advance the displacement of well-paid job opportunities for many. While there are numerous ways to address economic inequality, there is growing interest in using some form of universal basic income (UBI) to enhance income and provide economic stability. However, these approaches rarely consider the potential environmental impact from the likely increase in aggregate demand for goods and services or consider ways to focus this demand on more sustainable forms of consumption. Based on the premise that the problems of income distribution and environmental sustainability must be addressed in an integrated and holistic way, this paper considers how a range of approaches to financing a UBI system, and a complementary market solution based on an ownership-broadening approach to inclusive capitalism, might advance or undermine strategies to improve environmental sustainability.

Suggested reference: Hall, R.P.; Ashford, R.; Ashford, N.A.; Arango-Quiroga, J. Universal Basic Income and Inclusive Capitalism: Consequences for Sustainability. Sustainability 201911, 4481.

Polish Translation of Inclusive Capitalism Article

16 05 2018

For those of you who can read polish, the paper I coauthored with Prof. Robert Ashford (Syracuse University) and Prof. Nicholas Ashford (MIT) on Broadening Capital Acquisition with the Earnings of Capital as a Means of Sustainable Growth and Environmental Sustainability, has been publish in RPEiS (Ruch Prawniczy, Ekonomiczny i Socjologiczny; Journal of Law, Economics and Sociology). RPEiS is the oldest academic journal in Poland that deals with all areas of law, economics, and sociology.

The original article was first published in the European Financial Review in 2012.

Robert Ashford, Ralph P. Hall, Nicholas A. Ashford (2017) Koncepcja binary approach jako instrument kształtowania zrównoważonego wzrostu. Ruch Prawniczy, Ekonomiczny i Socjologiczny 4: 191-201.

Inclusive Capitalism

26 03 2018

Earlier this month, Prof. Robert Ashford and I had the pleasure of engaging with various academic, government, and non-government entities in the UK about our ideas on inclusive capitalism. The two images below will take you to a version of the presentations we gave at the University of Oxford, in London (at the Portcullis House and Syracuse University’s Faraday House), and at the University of Southampton.

In the first presentation, I outline two major challenges that can be represented by two “ice hockey stick” curves. The first curve relates to global climate change, but can be thought of as emblematic of a range of stubborn environmental concerns that show no signs of halting or declining with continued economic growth. I predict that we will soon see a similar curve for the volume of plastic waste in the world’s oceans. Curves could also be drawn for the bioaccumulation of persistent chemicals. For example, when looking at the health of long-lived and high trophic level marine mammals, there is now evidence that some killer whales have consumed sufficient quantities of polybrominated diphenyl ethers (PBDEs) to be fireproof. Many scientists are now concerned about the health and environmental impacts of these chemicals, especially on reproductive and immune systems.

The second ice hockey stick curve provides a snapshot of the concentration of wealth in the US that is accompanied by a series of graphs that chart a number of concerns relating to the hollowing out of the middle class (or job polarization) in America and the EU, and to trends in income inequality over the past several decades.

The real challenge comes when the two curves are considered alongside one another. In 2012, the Rio+20 conference advanced the notion of the Green Economy as a mechanism through which progress will be made towards sustainable development. Since the dominant strategy for advancing a green economy – that targets the decoupling economic growth from growth in environmental impacts – is based on advanced and hyper-efficient technologies, a critical question is what will happen to well-paying jobs and more broadly to trends in income inequality and job polarization. (For more on this issue, see my book review of Cents and Sustainability.) Having mapped out these macro concerns, Prof. Ashford (in his presentation) provides a new way to view them based on the principles of binary economics (what we call inclusive capitalism).

The following text (from our talk description) provides a brief overview of the content of Prof Ashford’s presentation (which can be viewed by clicking on the image below below).

To reverse growing income inequality and to achieve greater and more broadly-shared prosperity and sustainable growth, Professor Ashford advocates a much more “inclusive capitalism” (beyond conventional right- and left-wing strategies of austerity and stimulus) based on “binary economics.” The inclusive capitalism approach is to broaden competitive market opportunities to acquire capital with the earnings of capital. The same market mechanisms that presently assist mostly wealthier people to acquire capital with the earnings of capital can even more profitably be opened, without redistribution, to assist poorer people to acquire capital with the earnings of capital. The prospect of such ownership broadening will unleash substantial (presently suppressed) productive capacity in the UK because the prospect of more broadly distributed capital earnings in future years provides great untapped incentives to profitably employ more labor and capital in earlier years.