Capitalism socialism and democracy chapter summary
Capitalism, Socialism and Democracy by Joseph SchumpeterCapitalism, 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 understated.
Why has the work endured so well? Schumpeters contention that the seeds of capitalisms decline were internal, and his equal and opposite hostility to centralist socialism have perplexed, engaged and infuriated readers since the books 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 more balanced consideration of the most important social movements of his and our time.
Capitalism, Socialism and Democracy after Fifty Years
Economics in a Changing World pp Cite as. Schumpeter dealt with five topics in his famous and much debated book Capitalism, Socialism and Democracy CSD published in He started with a thorough discussion of the Marxian doctrine, which is a brilliant analysis of Marx the prophet, the sociologist, the economist and the teacher. Then follows part two, which has attracted most attention, on the development or rather the decay of capitalism. In the closing part five, Schumpeter presents a historical sketch of socialist parties. Unable to display preview.
Schumpeter himself cannot be called a member of the Austrian School but he emerges from within its culture and among its leading thinkers. Schumpeter went his own way with an eclectic and unsystematic theory of economics. But he is second to none in the integration of social, political, and economic thought. He understood Marxism and capitalist theory as well as any of his contemporaries, and managed to keep enough distance from the affair of the day to observe the big trends and the dynamics pushing them. It was written in and its importance has grown year by year to the point that no student of the liberal society can afford not to read and master this treatise. It is most famous for its prediction that capitalism is unsustainable not because it is a flawed system but rather because voters and bureaucrats in an otherwise free society will fail to protect capitalism from its enemies. He is particularly ruthless in observing how people take the triumphs of capitalism for granted, and how even those who benefit most from its productivity tend to be the same people who want the capitalist process shut down in their own self-interest.