Academic, Economist (1883-1950)
Joseph Schumpeter was an Austrian born economist and political scientist who carved out a successful career as a professor at Harvard University and the author of many influential books and articles.
Schumpeter is most famous for his idea of ‘creative destruction’. Schumpeter contended that economic change hinges on a combination of market power, innovation and entrepreneurial activity. He posits that innovation creates a monopoly and super-normal profit, and this encourages other entrepreneurs to innovate and develop new products to capture part of the super-normal profit. As well as providing this evolutionary view of economics, Schumpeter is also known for his criticism of Marxism as he argued that socialism would lead to a dictatorship.
“Economic progress, in capitalist society, means turmoil.”
– Joseph Schumpeter