PAPM 1000 Lecture Notes - Lecture 12: Joseph Schumpeter, Economic Sociology, Productive Forces

• School: Carleton University
• Department: Public Affairs and Policy Management
• Course: PAPM 1000
• Professor: Marc Hanvelt

Document Summary

Capitalism based on entrepreneurship, human will capable of transforming world. Theory of economic development; merging marx with walras: make own econ decisions, gen eq. With optimal social outcomes: calls general eq. Innovation: product with demand: reshape world according to own inner voice. Creative destruction: capitalism constantly transforming its own foundations: capitalism dynamic systems, characterized by transformation through innovation, calls this creative destruction, circular flow, to create something must destroy part of system. Nichean superhuman: can"t stand institutional economics (hates veblen, need monopolistic power for innovation. Society will emerge as the national product of capitalism: does not naturally give way to socialism, doesn"t think really is a bad thing, just boring, lose capacity of human will to transform society. What is innovation for him: things that break circular flow, creating demand, things that can be patented, transform society/ economic world, create new demand/ change.