[ read online Textbooks ] Capitalism, Socialism and DemocracyAuthor Joseph Schumpeter – Gsagency.co

Capitalism, Socialism And Democracy Remains One Of The Greatest Works Of Social Theory Written This Century When It First Appeared The New English Weekly Predicted That For The Next Five To Ten Years It Will Cetainly Remain A Work With Which No One Who Professes Any Degree Of Information On Sociology Or Economics Can Afford To Be Unacquainted Fifty Years On, This Prediction Seems A Little UnderstatedWhy Has The Work Endured So Well Schumpeter S Contention That The Seeds Of Capitalism S Decline Were Internal, And His Equal And Opposite Hostility To Centralist Socialism Have Perplexed, Engaged And Infuriated Readers Since The Book S Publication By Refusing To Become An Advocate For Either Position Schumpeter Was Able Both To Make His Own Great And Original Contribution And To Clear The Way For A Balanced Consideration Of The Most Important Social Movements Of His And Our Time It shows how democracy is a vast conspiracy, elections are fraudulent, individual votes are useless, and human nature is corrupt. Comment In the end it will be seen that the greatest enemy of capitalism was always democracy, i.e the will of the people Once the people turn anti capitalistic, under the influence of a disaffected intelligencia, there is absolutely nothing that can stand against them Schumpeter at one and the same time believes that Capitalism is the most adequate description of economic reality and that it is doomed How is this possible But it is exactly as the Savior of the Christians said so long ago Man does not live by bread alone Capitalism provides bread but lacks drama, romance, myth that is why economic irrelevancies and irrationalities like say Communism and Christianity can never be entirely won over or destroyed What Capitalism cannot deliver will be discovered, or created, somewhere else Eventually, one of these discoveries or creations will end the Capitalist era. This is a classic of economics and of entrepreneurship that lots of people have read in their undergraduate economics or business classes It is worth reading to get the full perspective of Schumpeter s view of how the economy works This is perhaps the most articulate statement on the role of of creative destruction and innovation as critical to the success of capitalism It is also also very cynical of Marxist approaches to economics Strangely enough, the section on socialism suggests that socialism may be the coming reality for Europe and America, and in this Schumpeter was accurate for Europe and America This is perhaps that he is writing at a time when free market capitalism had not acquitted itself well and government intervention seemed increasingly worthwhile This seems at odds with his emphasis on innovation and entrepreneurship and does create somewhat of a tension that is not well resolved in the book Schumpeter s thinking on innovation and entrepreneurship has fared better over time than his positive views on socialism, although I am still not sure of his real tone. Schumpeter is best remembered for having coined the term creative destruction a process well understood today whereby entire industries and the jobs that go with them are continually rendered obsolete as new products, new technologies, new ways to make money emerge Schumpeter speculates about the possibility of a democratic socialist utopia, but he unconvincingly discounts the reality of human acquisitiveness and the desire for upward mobility Further, he na vely discounted the authoritarian nature of the Russian experiment of his day, suggesting that the degree of coercion in the soviet model would be relaxed as conditions improved, which they did not The book is colored very much by the widespread debate of his day WW2 era as to whether capitalism or socialism would prevail Lost in the titanic struggle between those two competing ideologies is democracy which, as it turns out today, cannot truly survive under either regime With the benefit of hindsight I m perhaps being unfair in judging the book on its merits, since Schumpeter could not have foreseen the calamitous outcome of the Soviet planned economy Nor could he have foreseen today s dilemma in America where a few billionaires have become so powerful that they are able to subvert the democratic process ref Dark Money by Jane Meyer It seems to me that Schumpeter was no democrat An interesting work from an historical perspective but certainly neither prophetic nor very useful in addressing the issues of our day when democracy has failed to take root in much of the world and is at risk almost everywhere that it has been instituted. Puede sobrevivir el capitalismo No, no creo que pueda En s ntesis, mi cita de frase textual impregnada, con la que me quedo. In the wake of the Second World War, Joseph Schumpeter wrote an exceptionally intriguing book that everyone, capitalist or socialist in persuasion, should read, and will probably enjoy reading Heavily inspired by Marx and especially his theory of history, as much a sociological as an economic text, and broad ranging in its analysis of the relationship between capital and society, it s a difficult book to pin down, and clearly the product of a remarkable thinker.The question which all prophetic works beg is why Schumpeter s vision hasn t come to life Rather than paving the way for a humane socialism, we have been left with an especially cruel form of neoliberal capitalism.I d also like to question his views on the role of intellectuals And his rather narrow view of what socialism is But hey, as I said, I sought out Schumpeter to provoke myself out of the dogmatic slumbers that I periodically feel myself falling into, and he made a than decent intellectual sparring partner. Schumpeter lived a very, well, Schumpeterian lifestyle, battered up and down and around the world by the winds of economic turmoil He argues that this undulating dynamism is in fact the defining attribute of capitalism and the reason it has been so undeniably successful at achieving economic growth Unlike most economists he defends capitalism warts and all He fully recognizes that we have never lived in anything like a perfectly competitive efficient market, and goes on to say that we wouldn t even want to in the first place He explicitly defends monopoly and speculation, and honestly makes a surprisingly good case Where he begins to lose me is in his defense of depressions he seems to think that a depression is a necessary corrective for the excesses of the boom, an attitude that Krugman aptly dubbed sado monetarism No, a depression is a mistake, an error that can be corrected relatively easily by sound policy.And then near the end of the book he goes completely off the deep end, going on a long rant about how it is obvious that rich people are superior beings and anyone who would doubt this is foolish or evil To be fair, he would never have met Paris Hilton or Donald Trump In his long discussion of socialism he actually he seems to think that the tyranny of Mao and Stalin were essential even laudable because there is simply no other way of keeping the masses in line It was so sickening I had to simply give up on the book at that point. Brilliant at times, but also pigheaded my star rating would only detract from a comprehensive understanding of the book deserves time and effort than I can spare here, so I m going to instead present a fraction of my notesSchumpeter might be loosely grouped with the other Austrian School of economists, but I see traces of him in some neo Marxist thought, including Wallerstein and Sweezy, as well as many of the neo Keynesians Schumpeter is arguably most famous for his phrase and idea of creative destruction , which he covers in about six pages economic development arises out of the destruction of a previous economic order e.g how electronic media have upended so many other industries over the past fifteen years He correctly places Marx as an inheritor of the classical economic tradition of David Ricardo, and notes that Marx, aside from his prophetic attraction to discontents, is important for noting the economic sociology of history Curiously enough, sees monopoly as being efficient than competitive economies, largely based on the idea of economies of scale technology will lead to greater concentration of capital also sees the downfall of capitalism as coming not from the proletariat, but from a dissident movement of intellectuals Profoundly elitist in his view of politics, arguing for an elite managerial class to rule Claims that modern intellectual growth is allowed only by capitalism, and I can see this idea clearly swiped by SowellConcludes by noting that democracy can exist without socialism, and vice versa, predicts that communism eventually overtake capitalism not through revolution but by peaceful assimilation through democratic means then a history of Marxist political parties from 1848 to the late 1940s At times, Schumpeter is bone headed, but when he is right, he is profoundly right, as in the case of creative destruction will no doubt return to this book, as there is much to grapple with Reading books like this is fun well, as fun as economic history can be, anyway It is a great read, especially for those interested in the political economy It is Schumpeter s best book, which is famous for popularising his acclaimed theory on capitalism, creative destruction Definitely not a light read, it took me forever to finish But it was worth the read I must confess, it is a difficult read even for those with an economics background, or those who have read Hegel s dialectics or Karl Marx s interpretation of history through dialectic materialism, as these theories or their interpretation features quite a lot By and large Schumpeter agrees with Karl Marx that socialism will ultimately follow after capitalism but they differ fundamentally on how that will come about Karl Marx believed that socialism would come at the behest of the proletariat through revolutions, whereas Schumpeter believes that capitalism by its very nature of creative destruction, it will cause its own destruction.