Is this the moment the Austrian economist Joseph Schumpeter had envisaged when he spoke of "creative destruction"? After all, it was Schumpeter who worried more than any other modern economist about what might be called the fragile condition of capitalism. He did so having lived through the economic horrors of Weimar, witnessed the terror of Soviet-style political economy, experienced the Depression -- and seen the chaos of World War II. Plenty of destruction, to be sure. His life's work concentrated on entrepreneurs renewing the economy through what he called "creative destruction."
Joseph Schumpeter's answer to all this is that the most important citizen is not the politician, nor the big businessman, nor the bankers on Wall Street. They are important, but not central to the renewal of democratic capitalism. That role, that burden falls to our fellow citizens who, in the face of the challenges we see all around us, are ready to pursuit what entrepreneurs do: Create the new, create jobs and make the wealth that will be more necessary than ever to purchase a future worth living.
Saturday, May 30, 2009
Schumpeter's Creative Destruction
Not a familiar name to many anymore I guess although a fine biography of him has recently come out. I took Economic History from Bob Voertman at Grinnell long ago so I remember. From Carl Schramm writing Schumpeter's Moment in yesterday's WSJ.