Goldtent TA Paradise

Schumpeter on Capitalism

1. Plunger says:

   May 1, 2022 - 1:59 pm at 1:59 pm

   Please stop right here. Pointless phony discussion because we don’t have capitalism. We live in a world of cronyism or socialist “capitalism” that no longer is ruled by the rule of law that capitalism requires, therefore no creative destruction. Crony capitalism can’t survive for sure as it self implodes, honest capitalism is self sustaining.

2. pedro_deleon says:

   May 1, 2022 - 2:24 pm at 2:24 pm

   If you actually read the article, it was a review of Schumpeter’s assessment of where he thought Capitalism was headed — Taken From 80 Years Ago. (Not arguments for or against it, given where we are today.)
   He was actually was quite pessimistic even back then, and identified his reasons why it would fail, including several of the points you raised.
   He would be surprised that creative destruction went on as long as it has.
   Smarter economists recognize that innovation over time is what propels our standard of living, expanding the pie.
   Left leaning economists (and others) are always taking the static view and merely want to redistribute the pie as it sits today without regard to what we do to “our pie baking” capabilities in the future.

   I posted the article because Schumpeter realized and identified the sophistication that was needed to see its comparative virtues (taking the long view), and he also recognized the social trends that were undermining its vitality and political viability.