According to theories first proposed by Louis Kelso, widespread use of central bank issued interest-free loans to fund employee-owned firms can finance economic growth whilst widening stock ownership in a way which binary economists believe will be non-inflationary.
ESOP |
In 1974 Henderson made BCG an independent business, and was one of the first to take advantage of the Employee Retirement Income Security Act of 1974 that allowed the establishment of an employee stock ownership plan (ESOP).
The UAL deal unraveled because the Association of Flight Attendants pulled out of the deal when management, in negotiations over an Employee Stock Ownership Plan (ESOP) designed to fund the leveraged buyout, refused to agree to terms equivalent to those negotiated with other labor groups.
Dickson Buxton contacts his friend, Senator Robert Packwood (R-OR), who tells him that many senators oppose the new rules and recommends rallying ESOP companies to lobby against them.