Joseph Schumpeter

SchumpeterSchumpeterianneo-SchumpeterianSchumpeter, JosephJ SchumpeterJoseph A. SchumpeterSchumpeter, Joseph A.Schumpeterian theories of innovation
Joseph Aloïs Schumpeter (8 February 1883 – 8 January 1950) was an Austrian political economist.wikipedia
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Creative destruction

mutation
One of the most influential economists of the 20th century, Schumpeter popularized the term "creative destruction" in economics. According to Christopher Freeman (2009), a scholar who devoted much time researching Schumpeter's work: "the central point of his whole life work [is]: that capitalism can only be understood as an evolutionary process of continuous innovation and 'creative destruction'".
Creative destruction (German: schöpferische Zerstörung), sometimes known as Schumpeter's gale, is a concept in economics which since the 1950s has become most readily identified with the Austrian economist Joseph Schumpeter who derived it from the work of Karl Marx and popularized it as a theory of economic innovation and the business cycle.

Třešť

Trest
Schumpeter was born in Triesch, Habsburg Moravia (now Třešť in the Czech Republic, then part of Austria-Hungary) in 1883 to Catholic German-speaking parents.
Economist Joseph Schumpeter was born there in 1883.

University of Bonn

BonnBonn UniversityRheinische Friedrich-Wilhelms-Universität Bonn
From 1925 to 1932, Schumpeter held a chair at the University of Bonn, Germany.
As of August 2018, among its notable alumni, faculty and researchers are 10 Nobel Laureates, 4 Fields Medalists, twelve Gottfried Wilhelm Leibniz Prize winners as well as Karl Marx, Friedrich Nietzsche, Heinrich Heine, Prince Albert, Pope Benedict XVI, Frederick III, Max Ernst, Konrad Adenauer, and Joseph Schumpeter.

Capitalism, Socialism and Democracy

This period of his life was characterized by hard work and comparatively little recognition of his massive 2-volume book Business Cycles. However, the Schumpeters persevered, and in 1942 published what became the most popular of all his works, Capitalism, Socialism and Democracy, reprinted many times and in many languages in the following decades, as well as cited thousands of times.
Capitalism, Socialism and Democracy is a book on economics (and on other levels, on sociology and history) by Joseph Schumpeter, arguably the most (or one of the most) famous, debated and important books by Schumpeter, and one of the most famous, debated and important books on social theory, social sciences and economics, in which he deals with capitalism, socialism and creative destruction.

Historical school of economics

Historical SchoolGerman Historical Schoolhistorical school of economic history
The source of Joseph Schumpeter's dynamic, change-oriented, and innovation-based economics was the Historical School of economics.
Prominent leaders included Gustav von Schmoller (1838–1917), and Max Weber (1864–1920) in Germany, and Joseph Alois Schumpeter (1883–1950) in the United States.

University of Vienna

ViennaVienna UniversityUniversity
After attending school at the Theresianum, Schumpeter began his career studying law at the University of Vienna under the Austrian capital theorist Eugen von Böhm-Bawerk, taking his PhD in 1906.
The founders of this school who studied and later instructed at the University of Vienna included Carl Menger, Eugen von Böhm-Bawerk, Friedrich von Wieser, Joseph Schumpeter, Ludwig von Mises and Friedrich Hayek.

Christopher Freeman

Chris FreemanFreeman
According to Christopher Freeman (2009), a scholar who devoted much time researching Schumpeter's work: "the central point of his whole life work [is]: that capitalism can only be understood as an evolutionary process of continuous innovation and 'creative destruction'".
Freeman contributed substantially to the revival of the neo-Schumpeterian tradition focusing on the crucial role of innovation for economic development and of scientific and technological activities for well-being.

Bourgeoisie

bourgeoisburgherburghers
In History of Economic Analysis, Schumpeter stated the following: "An 'automatic' gold currency is part and parcel of a laissez-faire and free-trade economy. It links every nation's money rates and price levels with the money-rates and price levels of all the other nations that are 'on gold.' However, gold is extremely sensitive to government expenditure and even to attitudes or policies that do not involve expenditure directly, for example, to foreign policy, to certain policies of taxation, and, in general, to precisely all those policies that violate the principles of [classical] liberalism. This is the reason why gold is so unpopular now and also why it was so popular in a bourgeois era."
Joseph Schumpeter saw the incorporation of new elements into an expanding bourgeoisie, particularly entrepreneurs who took risks to bring innovation to industries and the economy through the process of creative destruction, as the driving force behind the capitalist engine.

Entrepreneurship

entrepreneurFounderentrepreneurs
Although his writings could be critical of the School, Schumpeter's work on the role of innovation and entrepreneurship can be seen as a continuation of ideas originated by the Historical School, especially the work of Gustav von Schmoller and Werner Sombart.
In the 20th century, the understanding of entrepreneurship owes much to the work of economist Joseph Schumpeter in the 1930s and other Austrian economists such as Carl Menger, Ludwig von Mises and Friedrich von Hayek.

Paul Samuelson

SamuelsonPaul A. SamuelsonSamuelson, Paul A.
Some colleagues thought his views outdated by Keynesianism which was fashionable; others resented his criticisms, particularly of their failure to offer an assistant professorship to Paul Samuelson, but recanted when they thought him likely to accept a position at Yale University.
As a graduate student at Harvard, Samuelson studied economics under Joseph Schumpeter, Wassily Leontief, Gottfried Haberler, and the "American Keynes" Alvin Hansen.

Kondratiev wave

long waveslong waves of capitalist developmentKondratiev
In fashioning this theory connecting innovations, cycles, and development, Schumpeter kept alive the Russian Nikolai Kondratiev's ideas on 50-year cycles, Kondratiev waves.
In 1939, Joseph Schumpeter suggested naming the cycles "Kondratieff waves" in his honor.

University of Graz

GrazGraz UniversityKarl-Franzens-Universität Graz
In 1911, he joined the University of Graz, where he remained until World War I.
Joseph Schumpeter, economist, later teaching at Harvard University, in Graz (1912–1914)

Economics

economiceconomisteconomic theory
One of the most influential economists of the 20th century, Schumpeter popularized the term "creative destruction" in economics.
Joseph Schumpeter described Aquinas as "coming nearer than any other group to being the "founders' of scientific economics" as to monetary, interest, and value theory within a natural-law perspective.

John Maynard Keynes

KeynesKeynesianKeynes, John Maynard
Schumpeter criticized John Maynard Keynes and David Ricardo for the "Ricardian vice."
Alfred Marshall which Joseph Schumpeter called "the most brilliant life of a man of science I have ever read."

Business cycle

economic boomboomboom and bust
Schumpeter's relationships with the ideas of other economists were quite complex in his most important contributions to economic analysis – the theory of business cycles and development.
Later, economist Joseph Schumpeter (1883–1950) argued that a Juglar cycle has four stages:

Hitotsubashi University

TokyoHigher Commercial SchoolHitotsubashi
In 1931, he was a visiting professor at The Tokyo College of Commerce.
Joseph Schumpeter: visiting professor in 1931

Gustav von Schmoller

Gustav SchmollerSchmoller
Although his writings could be critical of the School, Schumpeter's work on the role of innovation and entrepreneurship can be seen as a continuation of ideas originated by the Historical School, especially the work of Gustav von Schmoller and Werner Sombart.
This led to the controversy known as the Methodenstreit, which today often appears as a waste of energies and one of the main reasons for the later demise of the whole historical school, although—as Joseph Schumpeter once pointed out—this was really a quarrel within that school.

Austria

🇦🇹AUTAustrian
Schumpeter claimed that he had set himself three goals in life: to be the greatest economist in the world, to be the best horseman in all of Austria and the greatest lover in all of Vienna.
The Austrian School of Economics, which is prominent as one of the main competitive directions for economic theory, is related to Austrian economists Carl Menger, Joseph Schumpeter, Eugen von Böhm-Bawerk, Ludwig von Mises, and Friedrich Hayek.

Moravia

MoravaMoravianMähren
Schumpeter was born in Triesch, Habsburg Moravia (now Třešť in the Czech Republic, then part of Austria-Hungary) in 1883 to Catholic German-speaking parents.
Joseph Schumpeter (1883–1950), economist and political scientist

Czechs

CzechBohemianCzech people
Both of his grandmothers were Czech.
Definition by the territory is still discussed alternative, from time to time is indicated for Czechs number of natives (speaking mostly German, English or otherwise) - these include US Secretary of State Madeleine Albright, film director Karel Reisz, actor Herbert Lom, the founder of psychoanalysis Sigmund Freud, the founder of genetics Gregor Mendel, logician and mathematician Kurt Gödel, the philosopher Edmund Husserl, scientists Gerty Cori, Carl Cori and Peter Grünberg (all Nobel Prize winners) and Ernst Mach, economists Joseph Schumpeter and Eugen Böhm von Bawerk, philosophers Bernard Bolzano, Ernest Gellner, Vilém Flusser and Herbert Feigl, Marxist theoretician Karl Kautsky, astronomer Johann Palisa, legal theorist Hans Kelsen, inventors Alois Senefelder and Viktor Kaplan, automotive designer Ferdinand Porsche, psychologist Max Wertheimer, a geologist Karl von Terzaghi, musicologists Eduard Hanslick and Guido Adler, chemist Johann Josef Loschmidt, biologists Heinrich Wilhelm Schott and Georg Joseph Kamel, the founder of the dermatology Ferdinand Ritter von Hebra, peace activist Bertha von Suttner (Nobel Peace Prize), the composers Gustav Mahler, Heinrich Biber, Viktor Ullmann, Ervin Schulhoff, Pavel Haas, Erich Wolfgang Korngold and Ralph Benatzky, writers Franz Kafka, Reiner Maria Rilke, Max Brod, Karl Kraus, Franz Werfel, Marie von Ebner-Eschenbach, Leo Perutz, Tom Stoppard and Egon Erwin Kisch, painters Anton Raphael Mengs and Emil Orlik, architects Adolf Loos, Peter Parler, Josef Hoffmann, Jan Santini Aichel and Kilian Ignaz Dientzenhofer, cellist David Popper, violist Heinrich Wilhelm Ernst, pianists Alice Herz-Sommer and Rudolf Serkin, president of Austria Karl Renner, Prime Minister of Poland Jerzy Buzek, industrialist Oskar Schindler, or chess player Wilhelm Steinitz.

Theresianum

Theresian AcademyFavoritaTheresa Academy
After attending school at the Theresianum, Schumpeter began his career studying law at the University of Vienna under the Austrian capital theorist Eugen von Böhm-Bawerk, taking his PhD in 1906.
Joseph Schumpeter, Austrian economist

Adam Smith

SmithAdam Smith’sNeo-Smithian
For instance, Schumpeter thought that the greatest 18th century economist was Turgot, not Adam Smith, as many consider, and he considered Léon Walras to be the "greatest of all economists", beside whom other economists' theories were "like inadequate attempts to catch some particular aspects of Walrasian truth".
Joseph Schumpeter criticised Smith for a lack of technical rigour, yet he argued that this enabled Smith's writings to appeal to wider audiences: "His very limitation made for success. Had he been more brilliant, he would not have been taken so seriously. Had he dug more deeply, had he unearthed more recondite truth, had he used more difficult and ingenious methods, he would not have been understood. But he had no such ambitions; in fact he disliked whatever went beyond plain common sense. He never moved above the heads of even the dullest readers. He led them on gently, encouraging them by trivialities and homely observations, making them feel comfortable all along."

Nicholas Georgescu-Roegen

Georgescu-RoegenGeorgescu-Roegen, NicholasNicholas Georgescu-Roegen: Criticising neoclassical economics
Other outstanding students of Schumpeter's include the economists Nicholas Georgescu-Roegen and Hyman Minsky and John Kenneth Galbraith and former chairman of the Federal Reserve, Alan Greenspan.
Early in his life, Georgescu-Roegen was the student and protégé of Joseph Schumpeter, who taught that irreversible evolutionary change and 'creative destruction' are inherent in capitalism.

David Ricardo

RicardoRicardianDavid Ricardo,MP
Schumpeter criticized John Maynard Keynes and David Ricardo for the "Ricardian vice."
However, Schumpeter coined an expression Ricardian vice, which indicates that rigorous logic does not provide a good economic theory.

International Joseph A. Schumpeter Society

Joseph Schumpeter PrizeSchumpeter Prize
The International Joseph A. Schumpeter Society awards the Schumpeter Prize.
The International Joseph A. Schumpeter Society (ISS) is an economics association aimed at furthering research in the spirit of Joseph Schumpeter.