Schumpeter proclaims in this classical analysis of capitalist
society first published in 1911 that economics is a natural
self-regulating mechanism when undisturbed by "social and other
meddlers." In his preface he argues that despite weaknesses,
theories are based on logic and provide structure for understanding
fact. Of those who argue against him, Schumpeter asks a fundamental
question: "Is it really artificial to keep separate the phenomena
incidental to running a firm and the phenomena incidental to
creating a new one?" In his answers, Schumpeter offers guidance to
Third World politicians no less than First World businesspeople. In
his substantial new introduction, John E. Elliott discusses the
salient ideas of The Theory of Economic Development against the
historical background of three great periods of economic thought in
the last two decades.
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