Changes

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.

Schumpeter's theory stands in contrast to [[Marxist]] economic theory, which focuses on keeping stale, outdated, and stagnant industries alive by eliminating oppressors and the ruling class, operating on a thin margin, or forbidding [[profit]]-making completely, leaving nothing for maintenance, upkeep, improvements, or competitiveness.

Schumpeter's theory evolved as a response to [[Marxist]] economic theory, which focuses on keeping stale, outdated, and stagnant industries alive by eliminating oppressors and the ruling class, operating on a thin margin, or forbidding [[profit]]-making completely, leaving nothing for maintenance, upkeep, improvements, or competitiveness.

Schumpeter saw that occurring, citing the disappearance of the capitalistic institutions that had fostered entrepreneurship in the late 1800s and early 1900s.

Schumpeter saw that occurring, citing the disappearance of the capitalistic institutions that had fostered entrepreneurship in the late 1800s and early 1900s.