Schumpeter's Revolution

The Creative Destruction of Economics


1. “Schumpeter versus new technology,” Schumpeter (blog), the Economist, June 9, 2010,

2. “Taking flight,” Schumpeter (blog), the Economist, September 17, 2009,

3. Arthur M. Diamond, "Schumpeter vs, Keynes: In the Long Run Not All of Us are Dead," Journal of the History of Economic Thought 31(2009), 531-541.

4. Joseph Schumpeter, Capitalism, Socialism and Democracy (New York: Routledge, 2010), 83.

5. Schumpeter, 82-83.

6. Schumpeter, 85.

7. Paul Krugman, Peddling Prosperity (New York: Norton, 1995).

8. Israel M. Kirzner, Competition and Entrepreneurship (Chicago: University of Chicago Press, 1978), 230.

9. If Schumpeter held a heterodox view of the importance of price competition, he proposed an even more idiosyncratic understanding of the profit motive. Every economist in the tradition of the Invisible Hand, whether in its neoclassical or Austrian expression, has assumed that self-interest or the desire to accumulate wealth explains economic activity. Indeed, John Stuart Mill defined economics in “On the Definition of Political Economy” as “concerned with [a person] solely as a being who desires to possess wealth, and who is capable of judging of the comparative efficacy of means for obtaining that end.”

10. Schumpeter, 132.

11. Max Nisen, “Three Stories About Steve Jobs, Einstein, And Ben Franklin Prove That Creative Beats Smart,” Business Insider (Australia), May 24, 2013,

12. Steven Shaviro, “Joseph Schumpeter,” The Pinocchio Theory (blog), August 1, 2005,

13. Joseph Schumpeter, The Economics and Sociology of Capitalism (Princeton: Princeton University Press, 1991), 413.

14. Andrew S. Grove, Only the Paranoid Survive: How to Exploit the Crisis Points that Challenge Every Company (New York: Crown Business Publishing, 1999), 22.

15. Capitalism, Socialism and Democracy, 83.

16. Capitalism, Socialism and Democracy, 84.

17. The Economics and Sociology of Capitalism, 427.