> In his earlier view (emphasized in The Theory of Economic Development, originally published in 1912), Schumpeter highlighted the function of entrepreneurs who is carrying out new combinations. He viewed the occurrence of discontinuous and “revolutionary” change as the core of “economic development” which breaks the economy out of its static mode (“circular flow”) and sets it on a dynamic path of fits and starts. Three decades later, in his Capitalism, Socialism, and Democracy (1942), Schumpeter took the view that dynamic capitalism was executed to fail because the very efficiency of capitalist enterprise would lead to monopolistic structures and the disappearance of the entrepreneur
> Schumpeter took the view that dynamic capitalism was executed to fail because the very efficiency of capitalist enterprise would lead to monopolistic structures and the disappearance of the entrepreneur
Which seems to be more or less spot on, except that 'the entrepreneur' also includes the lucky few that end up with the new monopolies.
Hi J.; I am not sure about your interpretation but if I understand correctly, the reply would be:
that «fail» refers to the spirit of entrepreneur-iality, i.e. the dynamism centered on innovation. Schumpeter was called (by Joan Robinson) «Marx with the adjectives changed»: his idea was that innovation be "the driving force of capitalism", but since efficiency creates bloat, the lean becomes heavy, the dynamism becomes bureaucracy, the "entrepreneur" becomes a """manager""" (an insulting label in Sch.), capitalism proceeds towards atrophy and finally transforms into socialism. In Schumpeter, "entrepreneur" means "the dynamic innovator"; the monopolistic phase is that of the heavy bureaucracies - that would be the failure. The Schumpeterian school (Sch. died in 1950 - crucial time) deals consequently with "why socialism did not happen".
If it was you that hit my parent post: I only reported that quote to help the poster asking for a bibliography - the paragraph contains reference to the two main books, with short descriptions left to the writing researcher (my own competence on Schumpeter is minimal). I am not personally defending their theories.
> In his earlier view (emphasized in The Theory of Economic Development, originally published in 1912), Schumpeter highlighted the function of entrepreneurs who is carrying out new combinations. He viewed the occurrence of discontinuous and “revolutionary” change as the core of “economic development” which breaks the economy out of its static mode (“circular flow”) and sets it on a dynamic path of fits and starts. Three decades later, in his Capitalism, Socialism, and Democracy (1942), Schumpeter took the view that dynamic capitalism was executed to fail because the very efficiency of capitalist enterprise would lead to monopolistic structures and the disappearance of the entrepreneur