Joseph A. Schumpeter Quotes & Sayings

For the duration of its collective life, or the time during which its identity may be assumed, each class resembles a hotel or an omnibus, always full, but always of different people. — Joseph A. Schumpeter

To the believer Marxism presents, first, a system of ultimate ends that embody the meaning of life and are absolute standards by which to judge events and actions ... — Joseph A. Schumpeter

For one thing, to predict the advent of big business was considering the conditions of Marx's day an achievement in itself. — Joseph A. Schumpeter

Innovation is the market introduction of a technical or organisational novelty, not just its invention. — Joseph A. Schumpeter

Innovations are changes which cannot be decomposed into infinitessimal steps. — Joseph A. Schumpeter

The evolution of the capitalist style of life could be easily - and perhaps most tellingly - described in terms of the genesis of the modern Lounge Suit. — Joseph A. Schumpeter

It is, after all, only common sense to realize that, but for the fact that economic life is a process of incessant internal change, the business cycle, as we know it, would not exist. — Joseph A. Schumpeter

The capitalist engine is first and last an engine of mass production which unavoidably also means production for the masses ... It is the cheap cloth, the cheap cotton and rayon fabric, boots, motorcars and so on that are the typical achievements of capitalist production, and not as a rule improvements that would mean much to the rich man. Queen Elizabeth owned silk stockings. The capitalist achievement does not typically consist in providing more silk stockings for queens but in bringing them within reach of factory girls. — Joseph A. Schumpeter

Creative Destruction is the essential fact about capitalism. — Joseph A. Schumpeter

Pessimistic visions about almost anything always strike the public as more erudite than optimistic ones — Joseph A. Schumpeter

Bureaucracy is not an obstacle to democracy but an inevitable complement to it. — Joseph A. Schumpeter

Can capitalism survive? No. I do not think it can. — Joseph A. Schumpeter

The intellectual and social climate needed to allow entrepreneurship to thrive will not exist in advanced capitalism. — Joseph A. Schumpeter

The perennial gale of creative destruction — Joseph A. Schumpeter

There exists no more democratic institution than the market — Joseph A. Schumpeter

The capitalist process shapes things and souls for socialism. — Joseph A. Schumpeter

It is however always important to remember that the ability to see things in their correct perspective may be, and often is, divorced from the ability to reason correctly and vice versa. That is why a man may be a very good theorist and yet talk absolute nonsense ... — Joseph A. Schumpeter

The ballot is stronger than bullets. — Joseph A. Schumpeter

The essential point to grasp is that in dealing with capitalism we are dealing with an evolutionary process — Joseph A. Schumpeter

Economic progress, in capitalist society, means turmoil. — Joseph A. Schumpeter

Profit is the payment you get when you take advantage of change. — Joseph A. Schumpeter

As a matter of fact, capitalist economy is not and cannot be stationary. Nor is it merely expanding in a steady manner. It is incessantly being revolutionized from within by new enterprise, i.e., by the intrusion of new commodities or new methods of production or new commercial opportunities into the industrial structure as it exists at any moment. — Joseph A. Schumpeter

Situations emerge in the process of creative destruction in which many firms may have to perish that nevertheless would be able to live on vigorously and usefully if they could weather a particular storm. — Joseph A. Schumpeter

Gentlemen, a depression is for capitalism like a good, cold douche. — Joseph A. Schumpeter

I set out to become the greatest lover in Vienna, the greatest horseman in Austria, and the greatest economist in the world. Alas, for the illusions of youth: as a horseman, I was never really first-rate. — Joseph A. Schumpeter

It is not true that democracy will always safeguard freedom of conscience better than autocracy. Witness the most famous of all trials. Pilate was, from the standpoint of the Jews, certainly the representative of autocracy. Yet he tried to protect freedom. And he yielded to a democracy. — Joseph A. Schumpeter

The metal of economic theory is in Marx's pages immersed in such a wealth of steaming phrases as to acquire a temperature not naturally its own. — Joseph A. Schumpeter

Entrepreneurial profit is the expression of the value of what the entrepreneur contributes to production. — Joseph A. Schumpeter

The capitalist achievement does not typically consist in providing more silk stocking for queens but in bringing them within the reach of factory girls in return for a steadily decreasing amount of effort. — Joseph A. Schumpeter

Access to the national dividend is usually to be had only on condition of some productive service previously rendered or of some product previously sold. This condition is, in this case, not yet fulfilled. It will be fulfilled only after the successful completion of the new combinations. Hence this credit will in the meantime affect the price level. — Joseph A. Schumpeter

There is another method of obtaining money ... It does not presuppose the existence of accumulated results of previous development, and hence may be considered as the only one which is available in strict logic. This method of obtaining money is the creation of purchasing power by banks. The form it takes is immaterial. — Joseph A. Schumpeter

Capitalism stands its trial before judges who have the sentence of death in their pockets. They are going to pass it, whatever the defense they may hear; the only success victorious defense can possibly produce is a change in the indictment. — Joseph A. Schumpeter

Nothing is so retentive as a nation's memory. — Joseph A. Schumpeter

The state has been living on a revenue which was being produced in the private sphere for private purposes and had to be deflected from these purposes by political force. The theory that construes taxes on the analogy of club dues or of the purchase of the services of, say, a doctor only proves how far removed this part of the social sciences is from scientific habits of mind. — Joseph A. Schumpeter

Our poverty will be brought home to us to its full extent only after the war. — Joseph A. Schumpeter

The typical citizen drops down to a lower level of mental performance as soon as he enters the political field. He argues and analyzes in a way which he would readily recognize as infantile within the sphere of his real interests. He becomes primitive again. — Joseph A. Schumpeter

Why should we stunt our ambitions and impoverish our lives in order to be insulted and looked down upon in our old age? — Joseph A. Schumpeter

Nothing is so treacherous as the obvious. — Joseph A. Schumpeter

Recognition of the inevitability of comprehensive bureaucratization does not solve the problems that arise out of it. — Joseph A. Schumpeter

The banker, therefore, is not so much primarily a middleman in the commodity "purchasing power" as a producer of this commodity. However, since all reserve funds and savings today usually flow to him, and the total demand for free purchasing power, whether existing or to be created, concentrates on him, he has either replaced private capitalists or become their agent; he has himself become the capitalist par excellence. — Joseph A. Schumpeter

Marxism is essentially a product of the bourgeois mind. — Joseph A. Schumpeter

We always plan too much and always think too little. We resent a call to thinking and hate unfamiliar argument that does not tally with what we already believe or would like to believe. — Joseph A. Schumpeter

The modern mind dislikes gold because it blurts out unpleasant truths. — Joseph A. Schumpeter

Lack of outlets, excess capacity, complete deadlock, in the end regular recurrence of national bankruptcies and other disasters-perhaps world wars from sheer capitalist despair-may confidently be anticipated. History is as simple a that. — Joseph A. Schumpeter

It is quite possible that future generations will look upon arguments about the inferiority of the socialist plan as we look upon Adam Smith's argument about joint stock companies which, also, were simply false. — Joseph A. Schumpeter

I know that it is not enough to be remembered for books and theories. One does not make a difference unless it is a difference in people's lives. — Joseph A. Schumpeter

Those revolutions are not strictly incessant; they occur in discrete rushes which are separated from each other by spans of comparative quiet. The process as a whole works incessantly however, in the sense that there always is either revolution or absorption of the results of revolution, both together forming what are known as business cycles. — Joseph A. Schumpeter

Success depends on intuition, on seeing what afterwards proves true but cannot be established at the moment. — Joseph A. Schumpeter

The strategic stimulus to economic development in Schumpeter's analysis is innovation, defined as the commercial or industrial application of something new
a new product, process or method of production, a new market or source of supply, a new form of commercial, business or financial organization. — Joseph A. Schumpeter

The function of entrepreneurs is to reform or revolutionize the pattern of production by exploiting an invention or, more generally, an untried technological possibility for producing a new commodity or producing an old one in a new way, by opening up a new source of supply of materials or a new outlet for products, by reorganizing an industry and so on. — Joseph A. Schumpeter

Democracy is a political method, that is to say, a certain type of institutional arrangement for arriving at political - legislative and administrative - decisions and hence incapable of being an end in itself. — Joseph A. Schumpeter

The very foundation of private property and free contracting wears away in a nation in which its most vital, most concrete, most meaningful types of private property and free contracting disappear from the moral horizon of the people. — Joseph A. Schumpeter

The spirit of a people, its cultural level, its social structure, the deeds its policy may prepare - all this and more is written in its fiscal history, stripped of all phrases. He who knows how to listen to its message here discerns the thunder of world history more clearly than anywhere else. — Joseph A. Schumpeter

The religious quality of Marxism also explains a characteristic attitude of the orthodox Marxist toward opponents. To him, as to any believer in a Faith, the opponent is not merely in error but in sin. Dissent is disapproved of not only intellectually but also morally. There cannot be any excuse for it once the Message has been revealed. — Joseph A. Schumpeter

At the heart of capitalism is creative destruction. — Joseph A. Schumpeter

Capitalism inevitably and by virtue of the very logic of its civilization creates, educates and subsidizes a vested interest in social unrest. — Joseph A. Schumpeter

The trouble with Russia is not that she is socialist but that she is Russia. — Joseph A. Schumpeter

The stock exchange is a poor substitute for the Holy Grail. — Joseph A. Schumpeter

Want and effective demand are not the same thing. If they were, the poorest nations would be the ones to display the most vigorous demand. — Joseph A. Schumpeter

In economic life competition is never completely lacking, but hardly ever is it perfect. — Joseph A. Schumpeter

The success of everything depends on intuition, the capacity of seeing things in a way which afterwards proves to be true, even though it cannot be established at the moment, and of grasping the essential fact, discarding the unessential, even though one can give no account of the principles by which this is done. — Joseph A. Schumpeter

Surely, nothing can be more plain or even more trite common sense than the proposition that innovation [ ... ] is at the center of practically all the phenomena, difficulties, and problems of economic life in capitalist society. — Joseph A. Schumpeter

All we can thus far say about the duration of the units of [the business cycle] and each of [its] two phases is that it will depend on the nature of the particular innovations that carry a cycle, ... and the financial conditions and habits prevailing in the business community in each case. — Joseph A. Schumpeter