Changes

'''Joseph Schumpeter''' (1883-1950) was the leading Austrian-American economist in the first half of the 20th century.

'''Joseph Schumpeter''' (1883-1950) was the leading Austrian-American economist in the first half of the 20th century.

He viewed the [[entrepreneur]] as the prime mover of [[capitalism]], and that in seeking profits the entrepreneur creates innovative organizational methods and production techniques.  This innovation causes economic growth, but also leads to business cycles, which leads to disfavor of capitalism.

He viewed the [[entrepreneur]] as the prime mover of [[capitalism]], and that in seeking profits the entrepreneur creates innovative organizational methods and production techniques.  This innovation causes economic growth, but also leads to business cycles, which leads to criticism of capitalism.

Schumpeter argued that capitalism is constantly re-inventing itself through innovation and improvements for greater efficiency, which leads to economic benefits to the wider society as a whole, a process he called [[creative destruction]]. [[Unemployment]] and worker retraining are downside effects of creative destruction, as older industries are replaced by technological improvements, lower costs, and rising living standards in the greater population.

Schumpeter argued that capitalism is constantly re-inventing itself through innovation and improvements for greater efficiency, which leads to economic benefits to the wider society as a whole, a process he called [[creative destruction]]. [[Unemployment]] and worker retraining are downside effects of creative destruction, as older industries are replaced by technological improvements, lower costs, and rising living standards in the greater population.