Schumpeter on Capitalist Development, Creative Destruction and Elites

Gülenay Baş Dinar () and Çınla Akdere ()
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Gülenay Baş Dinar: Bolu Abant Izzet Baysal University
Çınla Akdere: Middle East Technical University

Chapter Chapter 4 in Tensions Between Capitalism and Democracy Today, 2023, pp 87-109 from Springer

Abstract: Abstract The intellectual interest in Schumpeter increased significantly after J. A. Schumpeter’s (1883–1950) concepts, such as innovation, creative destruction, and entrepreneurship, were employed to explain the rapid economic changes in the 1980s. As Schumpeter proposed, innovations accelerated capitalist development rapidly while leading to serious economic instability. Schumpeter argued that the success of capitalism, not failure, would lead to instability. While innovations rapidly dismantle the old economic structure, they give way to a new one. Furthermore, since computer technology was based on data-intensive technologies in the 1990s, only large companies could adapt to rapid developments. Therefore, innovations and competition increased the monopolistic tendencies in the economy, leading to a growth company size. The fact that markets rely on monopolistic competition rather than free competition would inevitably lead to the power of interest groups and control of the government by the elites.

Keywords: Capitalist development; Creative destruction; Elites; Representative democracy (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-45547-6_4

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DOI: 10.1007/978-3-031-45547-6_4

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