The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and the Business CycleSchumpeter proclaims in this classical analysis of capitalist society first published in 1911 that economics is a natural self-regulating mechanism when undisturbed by "social and other meddlers." In his preface he argues that despite weaknesses, theories are based on logic and provide structure for understanding fact. Of those who argue against him, Schumpeter asks a fundamental question: "Is it really artificial to keep separate the phenomena incidental to running a firm and the phenomena incidental to creating a new one?" In his answers, Schumpeter offers guidance to Third World politicians no less than First World businesspeople. In his substantial new introduction, John E. Elliott discusses the salient ideas of The Theory of Economic Development against the historical background of three great periods of economic thought in the last two decades. |
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actually analysis appear argument bank become Böhm-Bawerk boom Business Cycles capital capitalist carrying cause chapter characteristic circular flow combinations commodity competition conception consequence consumption costs course created credit means crises cyclical demand depression duction economic development economic period economic process economic system economic theory economists element employment enterprise entrepreneur entrepreneurial profit equilibrium essential example exchange economy existing explained expression fact function fundamental Hence important imputed income increase individual industry innovations interest J.B. Clark Joseph Alois Schumpeter Keynes kind labor and land latter marginal marginal utility Marx means of payment means of production ment method money market monopoly nature necessary nomic non-exchange economy normal permanent phenomena phenomenon position possible practice preneur principle problem produced means purchasing power quantity question reader result rôle Schumpeter Schumpeter's sense services of labor simply social static stationary surplus values terest theoretical things tion