Able Quote by Louis O. Kelso
“The purpose of finance is to enable business to acquire the ownership of capital instruments before it has saved the funds to buy and pay for them. The logic used by business in investing is things that will pay for themselves is not today available to the 95% born without capital. Most of us owe instead of own. And the less the economy needs our labor, the less able we are to "save" our way to capital ownership.”
About This Quote
Source Book: Capital Theory and the Business Cycle, Louis O. Kelso, 1972
Finance should let businesses use capital assets before they can afford to buy them, shifting risk from individuals to firms.
In simple terms: Finance lets firms use capital early, shifting risk.
Key Takeaway
Use finance to leverage growth before saving.
Themes
finance
capital
risk
inequality
labor
Mood
analytical
critical
Type
economic
philosophical
When to use this quote
- startup funding
- real estate acquisition
- equipment leasing
- venture capital
- public infrastructure
Key Concepts
ownership
leverage
economic structure
Questions to Reflect On
- How can we balance early capital access with financial stability?
- What safeguards protect those without capital?
A Different Perspective
May encourage debt dependence and speculative bubbles.
