Now that I've read most of Schumpeter's work, I can understand why he said this book nearly killed him. The amount of research and depth in every page is mindboggling. Schumpeter does have the tendency to overkill sentences and thoughts but seriously, every page is complex and deep and you must read this book if you are student of economics. If only his conclusions could predict business cycles more accurately for all we have is history.
on March 19, 2014
Alan Greenspan, the big guy at the Federal Reserve Bank a few years ago, noted that normal economic theory did not apply to Silicon Valley. Greenspan pointed out that only Schumpeter's idea of Creative Destruction explained the immense success of Silicon Valley. In the 1940's Schumpeter entered into a debate as to what in fact is capitalism since the orthodox economists were clueless about the internal workings of capitalism, per John Maynard Keynes. To Keynes the proposed solutions by the orthodox economists to the world crisis of the Great Depression would only make difficult times even more difficult. Keynes solution was the often used Keynsian stimulus. Schumpeter proposed that the theory of business cycles actually provided a true and functional definition of what in fact are the internal workings of capitalism. So, from this perspective this two volume set in indispensable reading for anybody who wants to understand the idea of Creative Destruction and the internal dynamics of Silicon Valley.
on May 10, 2005
If you don't want to be swallowed with the Mathematics of the General Equilibrium Theory of Walras (and then Arrow and Debreu) read from chapter one to three of Schumpeter's Business Cycles.
I don't recommend the other chapters to reach a better comprehension of Schumpeter... I think it's too much out of context history. Very dificult to understand for engineers, economists and non historian people. Perhaps a best option is the reading of "The Human Web: A Bird's-Eye View of World History" by McNeill. This book has a mountains of unexpected links with Shumpeter's...but, of course, I know It wasn't Schumpeter's Aim to describe economy in a Human History Perspective.