Joseph Schumpeter
JOSEPH A. SCHUMPETER  Macroknow Library

Capitalism, Socialism and Democracy.

"Can capitalism survive? No. I do not think it can"1a CARNEGIE SPENGLER ZINN

" . . . This process of Creative Destruction is the essential fact about capitalism."1b

"The perfectly bureaucratized giant industrial unit not only ousts the small or medium-sized firm and 'expropriates' its owners, but in the end it also ousts the entrepreneur . . . "1c MARX PASTEUR CARNEGIE POINCAR� SCHUMPETER GHANDI

" . . . [T]here is inherent in the capitalist system a tendency toward self-destruction . . . "1d

Business Cycles.
" . . .
[P]ractically anyone, however lacking in aptitude and training, can drift into the banking business . . ."

" . . . [C]apitalism is that form of private property economy in which innovations are carried out by means of borrowed money . . . "2b MARX RAND FRIEDMAN AYOUB

"It was the financing of innovation by credit creation . . . which is at the bottom of that 'reckless banking.'"2c

"Capitalism and its civilization may be decaying, shading off into something else, or tottering toward a violent death."2d CARNEGIE SPENGLER

" . . . [W]ithout innovation, no entrepreneurs, without entrepreneurial achievement, no capitalist returns . . . "2e


1 Joseph A. Schumpeter (1883-1950). Capitalism, Socialism and Democracy (1942). 3rd ed. Introduction by Tom Bottomore. Joseph A. Schumpeter, 1942, 1947. Harper & Row, Publishers, Inc., 1950. George Allen & Unwin (Publishers) Ltd., 1976. New York, NY: Harper & Row, Publishers, Inc. (Originally pub. by Harper & Brothers.)
a Prologue, at 61-61.
b The Process of Creative Destruction, at 81-86.
c Crumbling Walls, at 131-142.
d Decomposition, at 156-163.

2 Joseph A. Schumpeter. Business Cycles: A Theoretical, Historical and Statistical Analysis of the Capitalist Process (1939). Abridged, with an Introduction, by Rendigs Fels. New York, NY: McGraw-Hill Inc., 1964. (Reprinted 1989 by Porcupine Press, Inc., Philadelphia PA.)
a "Wildcat banking," at 91.
b Capitalism defined, at 179.
c "Reckless banking," at 197.
d The World Crisis and After, at 330-423, especially at 332.
e The great source of investment opportunity, at 405-406.