Schumpeter’s Theory of Ideological Influence

Matthew Steen

History of Economics Review, 2004, vol. 39, issue 1, 35-64

Abstract: This article contains a reassessment of Schumpeter’s theory of ideological influence. It begins by comparing Marx’s and Engels’s ‘negative’ conception of ideology to Schumpeter’s ‘positive’ interpretation. Next, Schumpeter’s theory of ideological bias is outlined. After that, inconsistencies in Schumpeter’s formulations of ‘ideology’ and ‘ideological influence’ are addressed using arguments derived from Carl Schmitt. The following sections appraise Schumpeter’s instrumentalist view that economic analysis is ‘value free’. Finally, the conclusion is reached that while Schumpeter’s theory of ideological bias is untenable, his epistemological categories remain relevant and useful.

Date: 2004
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DOI: 10.1080/18386318.2004.11682102

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