Joseph Schumpeter – Stuck in Customs

Joseph Schumpeter

One of the guys I have gotten to know up here at Starbucks is Dr. John Butler, this really cool economist and entrepreneur professor at UT. We got off on the topics of economics and I was praising the greatness of Milton Friedman. He said if I like Friedman, then I would love Joseph Schumpeter – an economist he guaranteed I had never heard of – and he was right. I jumped over to Amazon and ordered his book (a $75 book!) and this guy is very sharp. Read this snippet from one of the analyses:

In his book he argued that capitalism would be destroyed by its own success. This would breed what we would now call the new class: bureaucrats, intellectuals, professors, lawyers, journalists, all of them beneficiaries of capitalism’s economic fruits and, in fact, parasitical on them, and yet all of them opposed to the ethos of wealth production, of saving, and of allocating resources to economic productivity.