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.
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.

1 comment:

Anonymous said...

How come Schramm's multi-billion-dollar foundation never links to

Carl Schramm Buys Up More Honorary Degrees for Schrammenomics: Carl Schramm, president and CEO of the Ewing Marion Kauffman Foundation, smiles as he prepares to accept his honorary doctor of business degree from University of Illinois
May 28, 2009 by entrepreneurshipeconomist
Is it not a conflict of interest to accept honorary degrees from institutions who one wires millions to from one’s hijacked foundation? (I know that Schrammeconomists define this as entrepreneurship, but is it?) Obama does not get an honorary degree from ASU, while Carl Schramm gets one from UI. Schramm also got an honorary degree/George Eastman Kodak award from Rochester. Guess what? The Kauffman Schrammeconomists also wired millions to Rochester.

Posted by John Bunch, Ph.D., May 03, 2007 8:50AM

It is interesting that Dealbreaker references Carl Shram of the Kauffman Foundation as an authority on ethics. Those of us who live in the Kansas City region know that Carl Schram and been a controversial figure since he was appointed to his post a number of years ago. Board members have resigned in protest of his leadership style and strategic choices. His controversial leadership led to the Missouri Attorney General reviewing the Kauffman Foundation for not staying true to the intent of Ewing Kauffman. The purpose of this review was stated as:

“In light of the public allegations of a departure from Mr. Kauffman’s intent, lack of appropriate oversight by the Board of Directors, and certain instances of conflicts of interest. ” (

See also this editorial from the Kansas City Business Journal (

Ewing Kauffman was famous as an ethical leader. Carl Schramm is not.

2. Carl Schramm lacks Intellect: Suppose you were to write a treatise on philosophy and leave out Aristotle, Plato, and Socrates. Suppose you were to write a treatise on physics and leave out Einstein and Newton. Schramm wrote a treatise on kapitalism and he left out Nobel Laureate F.A. Hayek and his teacher Ludwig Von Mises.


0 results for ‘hayek’
0 results for ‘mises’

Now Schramm has hired Dane Stangler to backdate Kauffman research to show that really Schramm was thinking about the Austrians all along; and again this ties into Schramm’s complete lack of character and corrupt nature.