Capitalism, Socialism, and Democracy by Joseph Alois Schumpeter Online

Capitalism, Socialism, and Democracy
Title : Capitalism, Socialism, and Democracy
Author :
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ISBN : null
Language : English
Format Type : Kindle Edition
Number of Pages : 394

One of the most famous, debated and important books on social theory, social sciences and economics. The success of capitalism will lead to a form of corporatism in which the intellectual and social climate needed to allow entrepreneurship to thrive will not exist, leading to capitalism being replaced by socialism. There will not be a revolution, simply a collapse from witOne of the most famous, debated and important books on social theory, social sciences and economics. The success of capitalism will lead to a form of corporatism in which the intellectual and social climate needed to allow entrepreneurship to thrive will not exist, leading to capitalism being replaced by socialism. There will not be a revolution, simply a collapse from within.


Capitalism, Socialism, and Democracy Reviews

  • Hadrian

    Brilliant at times, but also pigheaded — my star rating would only detract from a more comprehensive understanding of the book — deserves more time and effort than I can spare here, so I'm going to instead present a fraction of my notesSchumpeter might be loosely grouped with the other Austrian School of economists, but I see traces of him in some neo-Marxist thought, including Wallerstein and Sweezy, as well as many of the neo-Keynesians—Schumpeter is arguably most famous for his phrase a [...]

  • Joe

    Comment:In the end it will be seen that the greatest enemy of capitalism was always democracy, i.e. the will of the people. Once the people turn anti-capitalistic, under the influence of a disaffected intelligencia, there is absolutely nothing that can stand against them. Schumpeter at one and the same time believes that Capitalism is the most adequate description of economic reality and that it is doomed. How is this possible? - But it is exactly as the Savior of the Christians said so long ago [...]

  • Marks54

    This is a classic of economics and of entrepreneurship that lots of people have read in their undergraduate economics or business classes. It is worth reading to get the full perspective of Schumpeter's view of how the economy works. This is perhaps the most articulate statement on the role of of "creative destruction" and innovation as critical to the success of capitalism. It is also also very cynical of Marxist approaches to economics. Strangely enough, the section on socialism suggests that [...]

  • Eric Baldwin

    It shows how democracy is a vast conspiracy, elections are fraudulent, individual votes are useless, and human nature is corrupt.

  • Andrew

    In the wake of the Second World War, Joseph Schumpeter wrote an exceptionally intriguing book that everyone, capitalist or socialist in persuasion, should read, and will probably enjoy reading. Heavily inspired by Marx and especially his theory of history, as much a sociological as an economic text, and broad-ranging in its analysis of the relationship between capital and society, it's a difficult book to pin down, and clearly the product of a remarkable thinker.The question-- which all propheti [...]

  • Jim Puskas

    Schumpeter is best remembered for having coined the term "creative destruction" a process well understood today whereby entire industries and the jobs that go with them are continually rendered obsolete as new products, new technologies, new ways to make money emerge. Schumpeter speculates about the possibility of a democratic socialist utopia, but he unconvincingly discounts the reality of human acquisitiveness and the desire for upward mobility. Further, he naïvely discounted the authoritaria [...]

  • Patrick

    Schumpeter lived a very, well, Schumpeterian lifestyle, battered up and down and around the world by the winds of economic turmoil. He argues that this undulating dynamism is in fact the defining attribute of capitalism and the reason it has been so undeniably successful at achieving economic growth. Unlike most economists he defends capitalism warts-and-all: He fully recognizes that we have never lived in anything like a perfectly-competitive efficient market, and goes on to say that we wouldn' [...]

  • Stevenglinert

    Schumpeter must have been a really shitty human being to hang out with. And his dating profile must have been intolerable to even read. Schumpeter does a better take-down of socialism and Marx than Hayek or Von Mises, but never gets into any libertarian sounding nonsense and his shtick about capitalism is the best pitch I've heard for it in awhile. Also for a book about economics, it's written in like, the most bitchy tone.

  • Curtis

    Excellent. An Austrian economist I can read and agree with most of the time. One of the best analysts since Weber.

  • Mehmed

    I got to read selective parts of this book and thought the analysis of Marxist thought was incredibly insightful and Schumpeter's prediction of capitalism's end compellingly argued. Particularly his analysis of Democracy as a mode of self-determination both politically and economically leads to the argument that it is inseparable from socialism. He is not a fan of this outcome, but is inclined to give credit to the power of this motive in determining systems of governing and economics.

  • Otto Lehto

    Schumpeter was a fascinating character, and his essays and books are fascinating to read. They seem to elude easy categorization. This particular book evinces an almost Hegelian dialectical method, whereby socialism and capitalism are seen as two sides of the same modernist coin. The section on capitalism contains the analysis of "creative destruction", which is justifiably well-known. But that only takes up a few pages, whereas the rest is devoted to a historical analysis of the conditions unde [...]

  • Sean Rosenthal

    Interesting Quotes:"Theocess of industrial mutationcessantly revolutionizes the economic structure FROM WITHIN, incessantly destroying the old one, incessantly creating a new one. This process of Creative Destruction is the essential fact about capitalismThe problem that is usuallysualized is how capitalism administers existing structures, whereas the relevant problem is how it creates and destroys them." -Joseph Schumpeter, Capitalism, Socialism, and Democracy"There are ultimate ideals and inte [...]

  • Edward Tse

    Schumpeter is a seminal economist in the 1900s who developed the theory of Creative Destruction and was referred to regularly in Alan Greenspan's book. He argued that innovation and technological change comes from entrepreneurs, and that this is driven by large companies that have the capital to invest in R&D. He argued that innovation creates temporary monopolies that were necessary to incentivize firms to develop new products and processes. Schumpeter argues in his book that capitalism's d [...]

  • Dan

    A tough book, but a vitally important book for understanding the subtle relationships between capitalism, socialism and democracy, especially in its explanation of how capitalism works through 'creative destruction'. Originally published in 1942, 1947 and 1950, this book still has wide applications for today, especially those sections dealing with entrepreneurship, central planning, and democratic processes. But beware, the points Schumpeter makes in this book are extremely subtle, and one canno [...]

  • Ethan Jacobs

    - His writing style is a little tough to engage with at times, but his astute and eye-opening analysis of the progression of capitalism certainly made this book worth reading. The ouline of socialism with its somewhat arduous details, while necessary to appeal to his audience, was a bit dull. I guess that the reality of a potentially effective socialism just isn't very romantic. All in all, worth the read.

  • Nick

    Famous for two things, creative destruction and the theory of democratic elitism. Most of the work is about socialism, its history and why he thought it would triumph over capitalism. His democratic elitism, which I used for a paper, is a lot like Woodrow Wilson's idea of presidential leadership, of the will of the people being incoherent and contradictory, and the necessity of elites to present coherent visions of leadership through open competition.

  • David

    The man can turn a phrase. Very enjoyable, though the economics content is rather minimal beyond Chapter 8. After wrestling with the question over the past few months, I have to disagree with McCraw's thesis that this was a satire. And with that, the logic on the end of capitalism seems weak. Most of my colleagues loved reading this, but certainly not all.

  • M

    Chapters 21 and 22. I do really like his two conceptions of democracy. Perhaps a little too pessimistic when it comes to the stupidity of the population, especially in political matter. Chapter 22 was great, and I think the role of leadership in a democracy is too often overlooked. Conception of democracy as the power struggle between the political elite very interesting.

  • Vitaly Repin

    Great book.I think that this is "must read" book for everybody who is interested in the perspectives of capitalism and socialism and their connections with democracy. The book was published in the middle of XX century but it is still very valid for our time.

  • Edward

    Introduction--Capitalism, Socialism and DemocracyPrefaces and Comments on Later Developments:Preface to the First Edition, 1942Preface to the Second Edition, 1946Preface to the Third Edition, 1949The March into SocialismNotesIndex

  • Neil Rempel

    A hard book, will need to reread it in the futureower!

  • Philip Chaston

    An interesting exploration of how Schumpeter tried to reconcile socialism and democracy. Like Marx, the trends he identified did not last ten years. He thought they might outlive the C20th.

  • Radwa

    I didn't read the whole book; i enjoyed what i read, although the language was quiet difficult for me. . .

  • George Anderson

    Essential book

  • Andrej Drapal

    I intended to read this book for quite some time. For schumpeter is still evaluated as important writef of economy issues and author of disruption concept. What I am really suprised after reasing it is that I could find no reference to Scumpeter as a communist economy supporter. I could hardly find a book that would so overtly support marxian ideology. He even praises Lenin and Stalin. How come that let' say does not mention this? Terrible. The book hopelessly seek to reconcile economic princip [...]

  • Guillaume Kosmala

    Schumpeter keeps a clear head throughout, tearing Marx apart and giving Capitalism its due diligence, yet after that reaches the inexorable conclusion that because of Capitalism's inevitable never-ending economic success it will undermine the social institutions it needs to survive and Socialism will have to be put in place as a replacement. (Did Fukuyama ever read this because it kicks his End of History right in the balls?)

  • Rade Ralevic

    Outstanding analysis of problems with capitalism as well as creative destruction theory but unbelievably naive programme for the future socialist society. At times I thought that the author is making fun with socialist. But no, he really wanted to believe in that utopia. It is strange since t is obvious that he read Von Mises's analysis of impossibility of socialist system without prices.

  • Jackson Cyril

    Considering that in the countries of the world in which capitalist technique has most matured-- W. Europe (including the Scandinavian countries and Germany) and Canada-- it has been tamed by democratically elected socialist parties, Schumpeter's analysis of the decline of capitalism (as a gradual, non-revolutionary process which leads to socialism) seems quite prescient and worth studying.

  • Shashank Kumar

    In the world where the lines between ideologies are blurred and crossed with feverish pace, this book is a great 101 to understand and revise the basics. Also its counter to Marx, makes for a very engaging theoretical discourse.

  • Louis

    Joseph Schumpeter’s Capitalism, Socialism and Democracy analyzes the relationship between economic systems and democracy, including the viability of socialism and democracy’s role. Among other noteworthy points, Schumpeter argues that capitalism is inherently dynamic and the process of “Creative Destruction” is at the core of capitalism. Additionally, he contests the Malthusian philosophy that overpopulation will result in starvation, as well as the notion that finite resources will even [...]