Can Capitalism Survive?: Creative Destruction and the Future of the Global Economy [Paperback]

Joseph A. Schumpeter (Author)

Book Description

Publication Date: September 1, 2009

Considered by many economists to be the finest analysis of capitalism ever written, Can Capitalism Survive? introduces Joseph A. Schumpeter's theory of "creative destruction," stating that in capitalist economies new innovations erode the position of established firms while also providing new and previously unforeseen avenues of economic growth. Today the effects of such advancements as Mp3s—replacing CDs, which in turn had replaced cassettes and vinyl records—have proven his ideas correct. Prophetically arguing that capitalist societies are also subject to "perennial gales" of destruction that wipe away fortunes, this great economist revealed the vast, often chaotic economic landscape of world capitalism. First published in Schumpeter's classic Capitalism, Socialism and Democracy, here is an invaluable guide the global economy.

Editorial Reviews

Review

“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 )

“The 20th century’s foremost economist.” (Steve Forbes, Forbes )

“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 )

“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 )

“The most influential economist of the 20th century.” (Peter Drucker, Fortune )

“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 )

About the Author

Joseph A. Schumpeter (1883-1950) served as Austria's first finance minister, made and lost a fortune as an investment banker, and taught economics for many years at Harvard. Capitalism, Socialism and Democracy is his best-known work.

Product Details

• Paperback: 208 pages
• Publisher: Harper Perennial Modern Classics (September 1, 2009)
• Language: English
• ISBN-10: 0061928011
• ISBN-13: 978-0061928017
• Product Dimensions: 7 x 4.4 x 0.7 inches
• Shipping Weight: 5.6 ounces (View shipping rates and policies)
• Average Customer Review: 3.0 out of 5 stars  See all reviews (1 customer review)
• Amazon Best Sellers Rank: #762,651 in Books (See Top 100 in Books)

Customer Reviews

Most Helpful Customer Reviews

2 of 4 people found the following review helpful:

3.0 out of 5 stars Mindful projections, limited by ideological bias, July 18, 2010

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M. Brown - See all my reviews

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This review is from: Can Capitalism Survive?: Creative Destruction and the Future of the Global Economy (Paperback)

Joseph Schumpeter's 'Can Capitalism Survive?' presents a detailed theory of his projection for the future of capitalism, while extrapolating on the reasons for and against its coming demise.

His observations about the superstructure of the capitalist economy are incredibly astute, in ways that other economists of the Austrian school would fail to perceive- it's historical significance, and, most importantly, it's ramifications on the development of society over the past two-hundred years.
Moreover, he humbly acknowledges, in ways other free-marketeers do not, a number of its negative consequences on social development- particularly in regard to family-structure, faith and basic humanistic compassion.

And yet, throughout the work there are a number of pressing contradictions in his logic- particularly in his failure to reconcile the historical development of capitalism vis-a-vis previous systems of social order.
He, like most economists, also attempts to repudiate any moral arguments in the battle between capitalism v. socialism (ones that he suggests would inherently favor socialism)-- while simultaneously defending an individualist utilitarianism throughout the entire work.
His position? The long-range, the broad-picture of economic development is what we must fixate upon, rather than the current condition when discussing the merits of unfettered capitalism. Here he introduces his theory of 'creative destruction', arguing that the growth of technology is spurred on by a perpetual cycle of destruction and creation of existing structures, which is constantly leading innovation. With this he staunchly defends the technological and material progress of the past two centuries as indebted solely to capitalism. He attributes all the positives of modernity to capitalism--embodied rationality-- while arguing that the rationality of socialism, and recognition of failures within capitalism, as short-sighted. In short, he has his cake and eats it too.

Schumpeter's 'Can Capitalism Survive?' is as much a treatise in defense of capitalism as it as a lamentation for its potential destruction. While it may be dated (completed and published in 1942), it continues to provide a number of solid arguments for those in favor of its continuation, even if his underlying ideology blinds him in recognizing some pressing logical shortcomings.