[lbo-talk] Keynes: Marx and the Koran

Carl Remick carlremick at gmail.com
Wed Sep 19 11:33:44 PDT 2007



> On 9/19/07, Shane Mage <shmage at pipeline.com> wrote:
>
> Carl Remick wrote:
> >
> > > "Schumpeter is just Marx with the adjectives changed" [Joan Robinson]
> >
> >Excellent! I've mentioned at least a couple of times on the list that
> >Schumpeter got it all backwards and that the phenomenon he described
> >was actually "destructive creation."
>
> But word order here means nothing.

Word order here means everything. Schumpeter's claim that capitalism caused "creative destruction" clearly means that capitalism destroyed the outmoded to create something new and improved. In reality capitalism blindly destroys things that retain value in order to deliver spurious innovations -- things that are New! and Improved! only in terms of advertising puffery. All that is solid melts into air, so to speak. Consider the development of financial derivatives, what a boon to humankind they have been!

As I recall, the central point of agreement between Marx and Schumpeter was that capitalism is doomed. For Marx, of course, that was something to be celebrated; for Schumpeter, something to be mourned.

Schumpeter famously said: "Early in life I had three ambitions. I wanted to be the greatest economist in the world, the greatest horseman in Austria, and the best lover in Vienna. Well, I never became the greatest horseman in Austria." But he did become become the greatest horse's ass.

Carl



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