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Transcript of JosephSchumpeter
- Father and grandfather were local textile entrepreneurs
- Studied at Vienna University, University of Berlin and
- London School of Economics
-Taught at Columbia University and Harvard Arpan NLN Joseph Schumpeter Dhruv Patel Michael Yu Economic trends during Schumpeter’s Era
• Creation of a national market.
• Mass production and mass distribution.
• “Trusts” dominated key industries; concentrated economic power Influence of Schumpeter’s theories
• Dependency Theory
– Poor nations- natural resources, cheap labor,
destination for obsolete technology, and markets
for developed nations.
– Wealthy nations- state of dependence
– Wealthy nations- counter-attempts by dependent
nations to resist their influences Creative Destruction
• Essential to Capatlism
• Process of Industrial Mutation- incessant
• Development through the destruction of
• Capitalism will eventually cause its own failure
• Some will profit, many will lose Schumpeter’s Theories
• Trust versus Competitive Capitalism
– Two extremes
– Difference: innovation and technological
• Companies ability to innovate is mainly
connected to its size
• Economic Development
– Spontaneous and discontinuous change in the
channels of circular flow Economic trends cont.
• Increasing technological innovations and inventions
• Tremendous urban growth
• Increasing immigrant population led to a more
competitive job market Influence on Schumpeter’s theories
• Karl Marx
– Cyclical nature and dynamic aspect of Capitalism
– Capitalism generates a market dominated by a
• Nikolai Kondratiev
– Capitalist economies have long term business
cycles of growth followed by depression
– Business Cycles also called “Kondratiev Waves”
were kept by Schumpeter. Influence of Schumpeter’s theories cont…
• Canadian Political Economy
– Schumpeter influenced many theorists working in this– Idea’s were shown through the new Canadian
Political Economy that developed
• Paul Sweezy– Close friend, assistant, colleague
at Harvard– His work reflected Schumpeter’s ideas Influence of Schumpeter’s theories cont…
• David Harvey
– Contradictions of Capitalism- innovation
• Marshall Berman
– Creative Destruction to explore processes within modernity
• Manuel Castells
– Capitalism invest and divests
Smith's "response" to Schumpeter's theories Disagree with the effects of capitalism.
Capitalism can survive under the influence on the "invisible hand."
Selfish motives are more productive than destructive. Marx's "response" to Schumpeter's theories (1883-1950) TIME (David Harvey) (Paul Sweezy) Works Cited
"Adam Smith." The Concise Encyclopedia of Economics. 2008. Library of Economics and
Liberty. Web. 01 March 2013.
Carter, Edward J. "JOSEPH SCHUMPETER AND CHRISTIAN ECONOMICS." N.p., n.d. Web. 20 Feb. 2013.
"Joseph Alois Schumpeter." The Concise Encyclopedia of Economics. 2008. Library of Economics
and Liberty. Web. 01 March 2013.
"Late Nineteenth." Late Nineteenth. N.p., n.d. Web. 07 Mar. 2013.
Liu, Alan. "Joseph Schumpeter, "Creative Destruction"" Joseph Schumpeter,
"Creative Destruction" New York: Harper, 1942, n.d. Web. 01 Mar. 2013.
Paul, Scott. "Comparison of Capitalist Dynamics in Marx and Schumpeter."
Comparison of Capitalist Dynamics in Marx and Schumpeter. N.p., n.d. Web. 20 Feb. 2013.
"The Depression of 1893." Economic History Services. N.p., 01 Feb. 2010. Web. 07 Mar. 2013.
Vissa, Naresh. "Why Adam Smith, Karl Marx, And Joseph Schumpeter Would Have Loved Walmart."
Business Insider. Stansberry Radio Network, 10 Sept. 2012. Web. 20 Feb. 2013.
-Mostly agreed as Schumpeter did develop his theories from Marx
-Capitalism is destroyed by its enemies rather than by its success as Schumpeter argued
-Marx relished destruction of Capitalism