PAPM 1000 Lecture Notes - Lecture 10: Joseph Schumpeter, Creative Destruction, Economic Sociology
Document Summary
Creative destruction: entrepreneurs, innovation and the future of capitalism according to joseph. Josef schumpeter (1883-1950): entrepreneurs are the engine of history as they reinvent society through innovation. Great admirer of marx (born in the year marx died, considered himself the reincarnation of marx. Keynes was also born in this year, and schumpeter lived in. Prof in austria, flees in 30s b/c nazis (goes to harvard to teach after) Predicts the downfall of capitalism to socialism in capitalism, socialism and democracy. In his history of economic analysis, schumpeter retrospectively analyzes each author for their contributions. On smith, he says he is not original, just synthesizes the works of others (same with marshall). Economists have preconceived visions (based in ideology) and then analytical tools of science are used to prove the ideology. Toolbox: (of these, economic history and statistics are his favourites) Theory of economic development merges marx and walras. In walras, equilibrium in markets begets 0 profit.