ABSTRACT
Long-run economic growth has been at the heart of economic analysis since the first founding documents of economic theory. This chapter introduces the theory of binary economics, which presents an approach to increasing non-wage income through broadening capital ownership and explores how democratizing ownership can increase individual or family earning capacity and protect public goods. It focuses on microfinance as a potentially critical approach to economic development in emerging economies. Economic growth was the topic of Adam Smith's treatise The Wealth of Nations. Economic historians speak in terms of "factor endowments" that nations might possess to explain their economic growth. The relationship between different factor endowments or types of capital and economic growth has been the subject of volumes of analysis, predictions, and reinterpretations. Productivity has traditionally been considered an engine of job creation and economic prosperity. The Solow neoclassical growth model encapsulates the main features of the neoclassical growth theory and is probably the famous model of economic growth.
