Joseph Schumpeter

Joseph Schumpeter

Joseph Schumpeter was the one who connected economics and business by introducing the economic concept of cycles in business. Schumpeter had his own way of economics. In business cycles he does not agree with Keynes or Walras. According to him Business cycles are circular and keep moving. This was quite different from views of economists in those days. But that is what we realized to be correct.

In his famous book Capitalism,Socialism and Democracy Joseph Schumpeter agrees with Marxian theory of collapse of Capitalistic economic structure. However what will be the cause and effect , he has his own views. According to Marx Capitalism would be removed by violent protests. Joseph Schumpeter said it is less likely and predicted slow death of Capitalistic economy. According to him Capitalism will slowly weaken and go away because it has some major flaws. This is what really happened in most of Capitalistic economies. In the same book he also said about democracy and the threat it poses to common people. We are observing the same in today’s world. Joseph Schumpeter theorized “Entrepreneurship”  and contributed a great deal to this neo-economic topic. He talks about innovation and technological changes which an entrepreneur brings to the society.

Joseph never let his hardship in child hood affect him and rose to greatness. It was the victory of human mind over the nature. Joseph signifies the coming of practical thoughts and processes which are relevant even today. His predictions and theories will work even after another 200 years I think.

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