Tagged: Schumpeter

Schumpeter: Creative Destruction. 1942

The following excerpt is Chapter 7 of Joseph Schumpeter’s book “Capitalism, Socialism, Democracy, originally written in 1942. It describes Capitalism as an evolutionary process, with continuous creative destruction of old structures. The theories of monopolistic and oligopolistic competition and their popular variants may in two ways be made to serve the view that capitalist reality is unfavorable to maximum performance in production. One may hold that it always has been so and that all along output has been expanding in spite of the secular sabotage perpetrated by the managing bourgeoisie. Advocates of this proposition would have to produce evidence to...

Joseph Schumpeter: State Imperialism and Capitalism (1919)

These are selected passages from an essay on the “Sociology of Imperialism” (1919) written by Joseph Schumpeter (1883-1950). For a short time, he was the Finance Minister of Austria in 1919, and later he became a Harvard professor of economics. He is famous for [easyazon_link identifier=”B00AWO0CYI” locale=”US” tag=”mainacademicsite-20″]Capitalism, Socialism and Democracy[/easyazon_link] (1942). Schumpeter’s analysis of imperialism contradicts the analysis of Lenin. Imperialism is not seen as the most advanced stage of capitalism but as the clear sign that pre-capitalistic (i.e. feudal) aspects survive in capitalism. This results from the subservience of the capitalists to state rulers from whom they ask for “protection...