Tagged: capitalism

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...

Postmodernism: An Analysis by Fredric Jameson.

Fredric Jameson offered a critique of postmodernism in 1991, in: Postmodernism, or, The Cultural Logic of Late Capitalism . As the title suggests, he sees postmodernism as a consequence of the late-capitalist fragmentation of society. The following text quotes two  sections from Chapter 1. I The last few years have been marked by an inverted millenarianism in which premonitions of the future, catastrophic or redemptive, have been replaced by senses of the end of this or that (the end of ideology, art, or social class; the “crisis” of Leninism, social democracy, or the welfare state, etc., etc.); taken together, all...

The Transformation of Money into Capital

“The Transformation of Money into Capital” is a section in Karl Marx’ book Capital, 1867. It is Part II of Volume 1, and it explains how money gets created and transformed in the  process of circulating commodities.  Money, as described by Marx, can only be transformed into capital through the circulation of commodities. Money originates not as capital, but only as means of exchange. Money becomes capital when it is used as a standard for exchange. The circulation of commodities has two forms that make up the general formula: C-M-C and M-C-M. C-M-C represents the process of first selling a commodity...