Tag Archives: Capitalism Socialism and Democracy

Schumpeter’s Gale: Creative Destruction

In Grundrisse, Karl Marx stated that capitalism reshape and destroy previous economic orders and it also continuously devalues existing wealth. Devaluing existing wealth can happen with wars, economic crises, entrepreneurial activities, constructing a building or railways etc. But what is the destructive point of these activities? Joseph Schumpeter, who was an Austrian American economist, developed a concept about creative destruction, considering Karl Marx’s ideas which were stated in Grundrisse and also in Communist Manifesto. Schumpeter was interested with innovative ideas