Creative Destruction

Early 20th century Austrian (now Czech Republic) economist Joseph Schumpeter coined the phrase "creative destruction" in his 1942 book Capitalism,Socialism,and Democracy. Sounds like an apt title for today don't you think? Schumpeter was not attempting to engage in political debate but rather highlight the business cycle and natural evolutionary dynamic of capitalism.

A couple interesting points from his writings. First, he was highly critical of economist John Maynard Keynes, whose theories of fiscal stimulus we are now practicing. He believed that the innovative qualities of capitalism and particularly entrepreneurship were key . He describes a possible method of how the intellectual class might destroy capitalism from within via creation of a welfare state and restrictions placed on innovation/entrepreneurship. Interesting in light of the current environment.