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Capitalism, Socialism, and Democracy, by Joseph A. Schumpeter
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This scarce antiquarian book is a facsimile reprint of the original. Due to its age, it may contain imperfections such as marks, notations, marginalia and flawed pages. Because we believe this work is culturally important, we have made it available as part of our commitment for protecting, preserving, and promoting the world's literature in affordable, high quality, modern editions that are true to the original work.
- Sales Rank: #348649 in Books
- Published on: 1962-12-11
- Released on: 1962-12-11
- Original language: English
- Number of items: 1
- Dimensions: 8.00" h x 1.01" w x 5.31" l,
- Binding: Paperback
- 431 pages
Review
“The 20th century’s foremost economist.” (Steve Forbes, Forbes)
“The most influential economist of the 20th century.” (Peter Drucker, Fortune)
“The great economist Joseph Schumpeter highlighted the role of innovation in powering the rise of new industries, the creative destruction of existing ones, and the growth in prosperity of economies.” (Richard Florida, Atlantic)
“Schumpeter gave us stunning insights into how the world really works. We are now living, it is said, in the Age of Schumpeter. . . . Schumpeter was a powerful prophet, and he now offers dazzling insights into everything from the rise of Wal-Mart to prosperity’s discontents.” (Robert J. Samuelson, Newsweek)
“The greatest defense of capitalist, European civilization ever penned. . . . Schumpeter did more than anyone to persuade American leaders to preserve the capitalist system” (American Conservative)
“Schumpeter may well be the most important economist of the 21st century.” (J. Bradford DeLong, Chronicle of Higher Education)
“Schumpeter was the most farsighted of twentieth-century economists. His focus on capitalism and creative destruction made him the prophet of globalization.” (The Nation)
Excerpt. © Reprinted by permission. All rights reserved.
Chapter One
Marx The Prophet
It was not by a slip that an analogy from the world of religion was I permitted to intrude into the title of this chapter. There is more than analogy. In one important sense, Marxism is a religion. To the believer it presents, first, a system of ultimate ends that embody the meaning of life and are absolute standards by which to judge events and actions; and, secondly, a guide to those ends which implies a plan of salvation and the indication of the evil from which mankind, or a chosen section of mankind, is to be saved. We may specify still further: Marxist socialism also belongs to that subgroup which promises paradise on this side of the grave. I believe that a formulation of these characteristics by an hierologist would give opportunities for classification and comment which might possibly lead much deeper into the sociological essence of Marxism than anything a mere economist can say.
The least important point about this is that it explains the success of Marxism. Purely scientific achievement, had it even been much more perfect than it was in the case of Marx, would never have won the immortality in the historical sense which is his. Nor would his arsenal of party slogans have done it. Part of his success, although a very minor part, is indeed attributable to the barrelful of white-hot phrases, of impassioned accusations and wrathful gesticulations, ready for use on any platform, that he put at the disposal of his flock. All that needs to be said about this aspect of the matter is that this ammunition has served and is serving its purpose very well, but that the production of it carried a disadvantage: in order to forge such weapons for the arena of social strife Marx had occasionally to bend, or to deviate from, the opinions that would logically follow from his system. However, if Marx had not been more than a purveyor of phraseology, he would be dead by now. Mankind is not grateful for that sort of service and forgets quickly the names of the people who write the librettos for its political operas.
But he was a prophet, and in order to understand the nature of this achievement we must visualize it in the setting of his own time. It was the zenith of bourgeois realization and the nadir of bourgeois civilization, the time of mechanistic materialism, of a cultural milieu which had as yet betrayed no sign that a new art and a new mode of life were in its womb, and which rioted in most repulsive banality. Faith in any real sense was rapidly falling away from all classes of society, and with it the only ray of light (apart from what may have been derived from Rochdale attitudes and saving banks) died from the workman's world, while intellectuals professed themselves highly satisfied with Mill's Logic and the Poor Law.
Now, to millions of human hearts the Marxian message of the terrestrial paradise of socialism meant a new ray of light and a new meaning of life. Call Marxist religion a counterfeit if you like, or a caricature of faith--there is plenty to be said for this view--but do not overlook or fail to admire the greatness of the achievement. Never mind that nearly all of those millions were unable to understand and appreciate the message in its true significance. That is the fate of all messages. The important thing is that the message was framed and conveyed in such a way as to be acceptable to the positivistic mind of its time--which was essentially bourgeois no doubt, but there is no paradox in saying that Marxism is essentially a product of the bourgeois mind. This was done, on the one hand, by formulating with unsurpassed force that feeling of being thwarted and ill treated which is the auto-therapeutic attitude of the unsuccessful many, and, on the other hand, by proclaiming that socialistic deliverance from those ills was a certainty amenable to rational proof.
Observe how supreme art here succeeds in weaving together those extra-rational cravings which receding religion had left running about like masterless dogs, and the rationalistic and materialistic tendencies of the time ineluctable for the moment, which would not tolerate any creed that had no scientific or pseudo-scientific connotation. Preaching the goal would have been ineffectual; analyzing a social process would have interested only a few hundred specialists. But preaching in the garb of analysis and analyzing with a view to heartfelt needs, this is what conquered passionate allegiance and gave to the Marxist that supreme boon which consists in the conviction that what one is and stands for can never be defeated but must conquer victoriously in the end. This, of course, does not exhaust the achievement. Personal force and the flash of prophecy work independently of the contents of the creed. No new life and no new meaning of life can be effectively revealed without. But this does not concern us here.
Something will have to be said about the cogency and correctness of Marx's attempt to prove the inevitability of the socialist goal. One remark, however, suffices as to what has been called above his formulation of the feelings of the unsuccessful many. It was, of course, not a true formulation of actual feelings, conscious or subconscious. Rather we could call it an attempt at replacing actual feelings by a true or false revelation of the logic of social evolution. By doing this and by at tributing--quite unrealistically--to the masses his own shibboleth of "class consciousness," he undoubtedly falsified the true psychology of the workman (which centers in the wish to become a small bourgeois and to be helped to that status by political force), but in so far as his teaching took effect he also expanded and ennobled it. He did not weep any sentimental tears about the beauty of the socialist idea.
Most helpful customer reviews
0 of 0 people found the following review helpful.
Five Stars
By Adoracion
Timely book, although written decades ago.
19 of 23 people found the following review helpful.
Wrong conclusion, but all the same ...
By B. Alcat
In this book, first published in 1942, Joseph A. Schumpeter reached the conclusion that capitalism wouldn't be able to survive, due to diverse characteristics that were intrinsic to it. For example, he thought that monopolistic practices would only increase with time, thus damaging the capitalist process and not allowing it to function smoothly.
Obviously, by now we have realized that his conclusion was inexact, but that doesn't mean that we should overlook *Capitalism, Socialism, and Democracy*. Schumpeter's analysis of capitalism and socialism, his concept of *creative destruction* and his economic definition of democracy are only some of the things included in this book that should be taken into account. Perhaps reality didn't end up matching the premises the author adhered to, but all the same we are likely to learn a lot from the valid points he makes along the way.
Schumpeter's draws the arguments to support his ideas from different fields: Economy, Sociology, History, and even (sometimes) Psychology. Because of that his premises don't tend to be unidimensional, but rather take into account the different facets of reality. As a result, this book is much more interesting to read, even though it might seem somehow difficult at first to many readers.
The interesting ideas in *Capitalism, Socialism, and Democracy* are many, and I can't tell you about all of them without making this review impossibly long. Despite that, I can tell you at least something regarding the notions that I consider more interesting, for example the well-explained notion that *creative destruction* is the essence of capitalism. Also, I think that it is worthwhile to highlight Schumpeter's economic definition of the democratic method, as an *institutional arrangement for arriving at political decisions in which individuals acquire the power to decide by means of a competitive struggle for the people's vote*.
On the whole, I think you will enormously appreciate this landmark book, if you enjoy a good and careful analysis and aren't easily scared by books that at first glance seem too difficult. Provided you persist, you will realize that this book is as easy to tackle as many others... The only difference is that after reading *Capitalism, Socialism, and Democracy* you will know a lot more, something that not so many other books can offer :)
Belen Alcat
39 of 45 people found the following review helpful.
1940s economist has a new day in the sun in 2001
By Max More
This classic book by economist Joseph Schumpeter originally came out in three editions in 1942, 1945, and 1950. The current 1984 edition begins with a helpful introduction by Tom Bottomore. The entire book is well worth reading if you have the time for some substantial thinking about economics, politics, and history on a grand scale. However, Schumpeter's half-century old tome has recently come back into vogue as everyone is picking up his term "creative destruction". Schumpeter, coming from the Austrian school of economics, focused on processes rather than states, making his thinking different from that of other economists of his time and for decades after. His notion of creative destruction perfectly fits as a description of what is happening in the new economy, as new technologies and business models and architectures are simultaneously destroying old sources of value while creating new opportunities for profit.
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