Creative Destruction Economic Process
A Creative Destruction Economic Process is an economic process that is a creative destruction process.
References
2013
- http://en.wikipedia.org/wiki/Creative_destruction
- Creative destruction, sometimes known as Schumpeter's gale, is a term in economics which has since the 1950s become most readily identified with the Austrian American economist Joseph Schumpeter, who adapted it from the work of Karl Marx and popularized it as a theory of economic innovation and the business cycle. The term is derived from Marxist economic theory, where it refers to the linked processes of the accumulation and annihilation of wealth under capitalism. These processes were first described in The Communist Manifesto (Marx and Engels, 1848)[1] and were expanded in Marx's Grundrisse (1857)[2] and "Volume IV" (1863) of Das Kapital.[3]
At its most basic, "creative destruction" (German: schöpferische Zerstörung) describes the way in which capitalist economic development arises out of the destruction of some prior economic order, and this is largely the sense implied by the German Marxist sociologist Werner Sombart who has been credited[4] with the first use of these terms in his work Krieg und Kapitalismus ("War and Capitalism", 1913).[5] In the earlier work of Marx, however, the idea of creative destruction or annihilation (German: Vernichtung) implies not only that capitalism destroys and reconfigures previous economic orders, but also that it must ceaselessly devalue existing wealth (whether through war, dereliction, or regular and periodic economic crises) in order to clear the ground for the creation of new wealth.
In Capitalism, Socialism and Democracy (1942), Joseph Schumpeter developed the concept out of a careful reading of Marx’s thought (to which the whole of Part I of the book is devoted), arguing (in Part II) that the creative-destructive forces unleashed by capitalism would eventually lead to its demise as a system (see below).[6] The original Marxian usage, that creative destruction is a bad thing, is still being used in the work of social scientists such as David Harvey,[7] Marshall Berman,[8] and Manuel Castells.[9]
- Creative destruction, sometimes known as Schumpeter's gale, is a term in economics which has since the 1950s become most readily identified with the Austrian American economist Joseph Schumpeter, who adapted it from the work of Karl Marx and popularized it as a theory of economic innovation and the business cycle. The term is derived from Marxist economic theory, where it refers to the linked processes of the accumulation and annihilation of wealth under capitalism. These processes were first described in The Communist Manifesto (Marx and Engels, 1848)[1] and were expanded in Marx's Grundrisse (1857)[2] and "Volume IV" (1863) of Das Kapital.[3]
- ↑ Marx, Karl; Engels, Friedrich (2002) [1848]. The Communist Manifesto. Moore, Samuel (trans. 1888). Harmondsworth, UK: Penguin. p. 226. ISBN 0-14-044757-1. http://books.google.co.uk/books?id=CY3b0mcDF9QC. Retrieved 2010-11-07.
- ↑ Marx, Karl (1993) [1857]. Grundrisse: Foundations of the Critique of Political Economy (rough draft). Nicolaus, Martin (trans. 1973). Harmondsworth, UK: Penguin. p. 750. ISBN 0-14-044575-7. http://books.google.co.uk/books?id=bDyemaqiZjUC. Retrieved 2010-11-07.
- ↑ Marx, Karl (1969) [1863]. Theories of Surplus-Value: "Volume IV" of Capital. 2. London: Lawrence & Wishart. pp. 495–96. http://books.google.co.uk/books?id=sU23AAAAIAAJ. Retrieved 2010-11-10.
- ↑ Reinert, Hugo; Reinert, Erik S. (2006). "Creative Destruction in Economics: Nietzsche, Sombart, Schumpeter". http://www.springerlink.com/content/j0g1348m35327v04/, Word document
- ↑ Discussing the way in which the destruction of forests in Europe laid the foundations for nineteenth-century capitalism, Sombart writes: "Wiederum aber steigt aus der Zerstörung neuer schöpferischer Geist empor" ("Again, however, from destruction a new spirit of creation arises"). Sombart, Werner (1913) (in German). Krieg und Kapitalismus. München. p. 207. ISBN 0-405-06539-6. http://www.archive.org/stream/kriegundkapitali00sombuoft/kriegundkapitali00sombuoft_djvu.txt. Retrieved 2010-11-07.
- ↑ Schumpeter, Joseph A. (1994) [1942]. Capitalism, Socialism and Democracy. London: Routledge. p. 139. ISBN 978-0-415-10762-4. http://books.google.com/books?id=6eM6YrMj46sC. Retrieved 23 November 2011.
- ↑ Harvey, David (2007) [1982]. Limits to Capital (2nd ed.). London: Verso. pp. 200–03. ISBN 1-84467-095-3. http://books.google.co.uk/books?id=KtAdAQAAIAAJ. Retrieved 2010-11-07.
- ↑ Berman, Marshall (1988). All that is Solid Melts into Air: The Experience of Modernity. Ringwood, Vic: Viking Penguin. ISBN 0-86091-785-1. http://books.google.co.uk/books?id=mox1ywiyhtgC. Retrieved 2010-11-07.
- ↑ Castells, Manuel (2000) [1996]. The Rise of the Network Society (2nd ed.). Oxford: Blackwell Publishers. ISBN 0-631-22140-9. http://books.google.co.uk/books?id=hngg4aFtJVcC. Retrieved 2010-11-07.
1994
- (Mortensen & Pissarides, 1994) ⇒ Dale T Mortensen, and Christopher A Pissarides. (1994). “Job Creation and Job Destruction in the Theory of Unemployment." Oxford University Press.
1942
- (Schumpeter, 1942) ⇒ Joseph Schumpeter. (1942). “Socialism, Capitalism and Democracy." Harper and Brothers.
1863
- (Marx, 1863) ⇒ Karl Marx. (1863). “Theories of Surplus-Value" Volume IV of [[Das Capital].".