Socialism and Democracy.
capitalism survive? No. I do not think it can"1a
" . . . This process of Creative
Destruction is the essential fact about capitalism."1b
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
" . . . [T]here is inherent
in the capitalist system a tendency toward self-destruction
. . . "1d
. . . [P]ractically anyone, however lacking in aptitude and
training, can drift into the banking business . . ."2a
" . . .
that form of private property economy in which innovations are
carried out by means of borrowed money . . . "2b
"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
" . . . [W]ithout innovation,
no entrepreneurs, without entrepreneurial achievement, no
capitalist returns . . . "2e
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.
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
e The great source of investment opportunity, at