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Capitalism, Socialism and Democracy remains one of the greatest works of social theory written this century. When it first appeared the New English Weekly predicted that 'for the next five to ten years it will cetainly remain a work with which no one who professes any degree of information on sociology or economics can afford to be unacquainted.' Fifty years on, this prediction seems a little understated. Why has the work endured so well? Schumpeter's contention that the seeds of capitalism's decline were internal, and his equal and opposite hostility to centralist socialism have perplexed, engaged and infuriated readers since the book's publication. By refusing to become an advocate for either position Schumpeter was able both to make his own great and original contribution and to clear the way for a more balanced consideration of the most important social movements of his and our time.
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Marc Trudel
reviewed Capitalism, socialism, and democracy on January 03, 2011 Capitalism
Comment:
In the end it will be seen that the greatest enemy of capitalism was always democracy, i.e. the will of the people. Once the people turn anti-capitalistic, under the influence of a disaffected intelligencia, there is absolutely nothing that can stand against them. Schumpeter at one and the same time believes that Capitalism is the most adequate description of economic reality and that it is doomed. How is this possible? - But it is exactly as the Savior of the Christians said so long ago: 'Man does not live by bread alone.' Capitalism provides bread but lacks drama, romance, myth; that is why economic 'irrelevancies' and 'irrationalities' like (say) Communism and Christianity can never be (entirely) won over or destroyed. - What Capitalism cannot deliver will be discovered, or created, somewhere else. Eventually, one of these discoveries or creations will end the Capitalist era.
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