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Joseph Schumpeter and Dynamic Economic Change
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Joseph Schumpeter and Dynamic Economic Change

Written By : Dr. Laurence S. Moss
Narrated By : Louis Rukeyser
Published By : Blackstone Audio Inc
Length : 3 hours
Categories : Economics
Our Price : $12.95
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Joseph Schumpeter (1883-1950) viewed capitalism as a dynamic engine of progress. In his view, mature
economic systems find a regular and stable routine of supply, demand, and exchange; Schumpeter called this the
circular flow. Entrepreneurs interrupt this circular flow with new ideas and visions about the economic future, recombining
existing resources to create new and more valuable products and services. Schumpeter saw the freedom of innovation and
exchange as the foundation of material progress in capitalist economies.

Schumpeter called capitalism a process of creative destruction because it overthrows old routines and methods of production.
But he recognized that this process is unstable, and therefore unsettling, for those who have become accustomed to established
ways. Schumpeter predicted growing political opposition to capitalism and a corresponding growth in socialism, in the 20th
century.

Babson College

 




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