Schumpeter Research Articles

Теория на парите без теория за ценността. Подходът на Петър Бернгардович Струве

In the article are presented the main logical points through which Peter Struve (1870–1944) explained the functioning of exchange and the coordination of individual economic activities. Value and the theory of value are eliminated. In its mildest form, it is subordinated to the theory of price and the theory of money. Accounting and statistics, as well as legal norms, became leading mechanisms for measuring individual human efforts. Peter Struve can be seen as a prominent representative of monetary analysis (if one follows Joseph Schumpeter's famous classification in his History of Economic Analysis).

Helene Bauer and Austrian school of economics

Helene Bauer was one of the leading economists of Austromarxism, an intellectual circle close to Austria’s Social Democratic Workers’ Party between the two world wars, which aimed to create a new socialist society by democratic means. Between 1923 and 1926, she contended with what would later become known as the Austrian School of Economics and its most remarkable theoreticians: Ludwig von Mises, Friedrich Hayek, and Joseph Schumpeter. Although important for the history of economic theory and methodology in the social sciences, these debates have largely been forgotten. The present article aims at filling this gap by revisiting the debate between Helene Bauer and the Austrian School of Economics around the general conceptions of the theory of value, attribution of value, and an appropriate methodology for the study of economics as a social science. The last part of the article describes a discord between Helene Bauer and Ludwig von Mises on social justice, democracy, and authoritarianism in interwar Austria.

The Serbian and Yugoslav Reception of Werner Sombart (1895-2022)

Following the publication of voluminous works such as Socialism and the Social Movement, German Economic Life in the 19th Century and Modern Capitalism, Werner Sombart (1863-1941) became one of the most prominent, most widely read and most translated European intellectuals of the first half of the 20th century. Sombart became very popular not only in Germany but also in other countries in Europe and beyond (particularly in Italy and Japan). As Reiner Grundmann and Nico Stehr have observed, the period after Sombart’s death in 1941 was marked by great changes in European and global sociological and economic thought. Consequently, Sombart was gradually marginalized and removed from the ranks of mainstream authors. Although he was held in high regard by, among others, Fernand Braudel and Joseph Schumpeter, Sombart’s work was neglected due to the paradigm changes in economics and sociology, with priority given to authors who based their research on traditions opposed to German historicism and Marxism.
 The history of this author’s reception among the Serbian and Yugoslav public is characterized by disontinuity and, compared to Max Weber and Karl Marx, insufficient comprehensiveness in its approach. It can be argued that the Serbian academic community has followed the trends in European scholarship from the late 19th century to the present day. In all analyses to date, Werner Sombart’s extensive oeuvre has been reduced to certain aspects (capitalism, social pluralism, a critique of his conceptions).
 Werner Sombart had a significant presence up until 1941. Even in these circumstances Serbian scholars, unlike Croatian ones, devoted more attention to ideas about the twilight and crisis of capitalism, the relationship between the state and the economy, the role of luxury and spending by the rich in the genesis of modern economic life. During communism Sombart’s work was completely marginalized due to ideological factors, a change of paradigm and a negative perception of his role in Germany’s political life. Also, Serbian sociology and social sciences more generally followed the trend of according great recognition to Max Weber, which, until the collapse of communism, had been limited, but following the breakup of Yugoslavia and the beginning of transition, increasingly overt and widespread, replacing the absolute dominance of the Marxist paradigm.
 And while Sombart has been completely neglected by the Croatian public, in Serbia there has been a revival of interest thanks to the recent translations of the study Luxury and Capitalism (2011) and the wartime pamphlet Traders and Heroes (2018). New research has drawn attention not only to the geopolitical aspects of Sombart’s thought, but also to his wartime engagement and the genesis of his ideas, which can be situated within the traditions of reactionary modernism.

THE “SOCIAL VALUE” DEBATE: AN EARLY CHAPTER IN THE HISTORY OF AMERICAN MARGINALISM

This paper provides a reconstruction of the debate on “social value” among early marginalists in the US. This will be done in three steps. The first step analyzes John B. Clark’s approach to social value as presented in his Distribution of Wealth; the second step deals with other influential contemporaries who adopted a similar social value perspective, with a main focus on Edwin R. A. Seligman; the third step discusses those critics who, with due differences in emphasis and style, animated the debate over social value, reviewing (among others) the contributions of Herbert J. Davenport, Joseph Schumpeter, Benjamin Anderson, John Maurice Clark, and George P. Watkins. The final section presents some conclusions.

Alfred Marshall, Allyn Young and business size

Abstract Many prominent thinkers such as Karl Marx and Joseph Schumpeter thought that monopoly capitalism would eventually replace competitive capitalism. Several subsequent economists like Antoine Cournot and Piero Sraffa also maintained that increasing returns are incompatible with competition. This paper examines Alfred Marshall’s and Allyn Young’s views on whether monopoly capitalism is inevitable and whether increasing returns are incompatible with competition. Both Marshall and Young took their data from real life and were of the view that the economy was dominated not by big but small and medium firms. Both built on Adam Smith’s analysis of the division of labour and thought that the dominant tendency in the system was that of industrial specialisation and differentiation. Even if some firms producing standardised products such as steel or raw materials became big, most specialised firms remained small, and both small and big firms coexisted in a framework of effective competition. Advent of imperfect competition did not mean absence of competition but rather its imperfect working.

Review of Two Biographies of Joseph Alois Schumpeter by Thomas K Mcgraw and Annette Schäfer

Review of Two Biographies of Joseph Alois Schumpeter by Thomas K Mcgraw and Annette Schäfer

Artificial Intelligence : in Creation and Destruction of Human Creativity pertaining to the Schumpeter’s Gale

Technological innovation stands as a crucial element in the advancement of humanity. Artificial Intelligence (AI) is a cutting-edge innovation that is highly sought after in the present times. This powerful and novel technology profoundly influences numerous aspects of our lives. The extensive and swift integration of AI tools in various domains has prompted conversations regarding the significance of AI and its potential influence on creativity. The main objective of this research paper is to conduct a thorough investigation into the impact of AI on different facets of human creativity. It will explore the potential applications of AI as a supportive instrument to augment and facilitate human creative endeavours. Additionally, the paper will delve into the potential risks and drawbacks associated with AI’s involvement in artistic pursuits, highlighting its potentially detrimental effects and proposing possible solutions to safeguard our creative expression. This research integrates Joseph Schumpeter’s ‘Creative Destruction’ theory (Schumpeter’s Gale), to analyse why AI is viewed as a Creative Destruction in Human Creativity.

Social Enterprises, Cooperatives or Benefit Corporations? On Reconciling Profit and the Common Good in Doing Business from a Polish Perspective

The aim of the article is to demonstrate that economic, technological and social changes, also thanks to the principle of sustainable development, lead to the transformation of existing and the emergence of new hybrid forms of conducting business activity. On one hand, there is a noticeable expansion of social economy mechanisms that reflect an ‘economic’ approach to providing broadly defined goods and services in the public interest, and there is also resurgence of democratic member-based organizations (DMOs), such as cooperatives with their dual nature and social and economic dimensions. On the other hand, traditional forms of for-profit business are transforming into entities that integrate social and environmental goals into business, known as Sustainability-Driven Hybrid Business Models (SHBMs), and of which benefit corporations (like U.S. Benefit Corporation or Social Purpose Corporation, Italian Societ. Benefit or French Soci.t. . mission) are an example. The transformation and emergence of these qualitatively new organizations is an illustration of the process of creative destruction described by Joseph Schumpeter. The article presents advantages and disadvantages associated with the benefit corporations. The analysis is concluded with the open question of whether legislative intervention is needed in this area, in particular whether it would be expedient to introduce ‘mission companies’ in Poland.

Pandemic Spiritual Leadership: A Trans-national Study of Innovation and Spiritual Practices.

The COVID-19 pandemic introduced disruption that crossed sectors, borders, and disciplinary boundaries. Among faith communities and religious leaders, numerous commentators have observed technological innovations in response to physical gathering disruptions. We outline a form of pandemic spiritual leadership that supports faith communities beyond digital innovation by combining original empirical research and a novel conceptual framework. Our project examined innovation through a comparative study of how faith leaders adapt religious practices during a time of disruption. While existing research on congregational responses to COVID-19 has documented sustained technological innovation, our research argues that technological innovation is only one feature of a broader catalog of innovative practices. To generate a trans-national sample, we used purposive sampling in two distinct locations, Pacific Northwest United States and Aotearoa New Zealand. Although separated by culture and geography, a purposeful sample across these two contexts illustrated how spiritual leaders in post-Christian contexts similarly responded to the pandemic crisis. The research involved semi-structured interviewing of nineteen faith leaders from seventeen communities we observed undertaking creative adaption. A trans-national selection deepened understandings of the dynamism of the unfolding pandemic and how limits, experienced differently in diverse contexts, can be generative. Our study identified six organizing practices: blessing, walking, slowing, place-making, connecting, and localizing care. We demonstrate how the presence of God is cultivated amid local letterboxes and neighborhood crossroads and argue for an intensification of the local as markers of pandemic spiritual leadership. These interrelated spiritual practices express features of Michel de Certeau's "pedestrian utterings," Joseph Schumpeter's "creative recombination" and Pierre Bourdieu's social theory. Working with Certeau, we describe pedestrian utterings as historic church practices reframed as everyday local practices. Working with Schumpeter, we describe how the six practices and the language of innovation used by participants express creative recombinations. Working with Bourdieu, we consider how disruption realigns social fields, including between individuals, congregations, and broader communities. Finally, amid social distancing, congregations proved to be an anchor in resourcing this pandemic spiritual leadership. These four theoretical foci and six localizing practices provide a conceptual framework for future research into spiritual practices and religious leadership in the wake of a crisis. Confinements in space and movement can be generative of spiritual practice. For religious leaders and organizations, the research informs the cultivation of concrete practices that can encourage communities of care as part of crisis preparation. For scholars and religious practitioners alike, while pandemics enforce social separation, pandemic spiritual leadership combines attention to the local and the particular, as new forms of in-place practice emerge to sustain faith communities.

Allyn Young’s Role as a Critic: Criticism as a Method to Advance Theory

Allyn Young’s wide knowledge of the economics literature placed him in an ideal position to critically review the work of others. His own attitude was that the discipline of economics was wide open for criticism, improvement, and refinement. He reviewed (or commented on) many authors such as William Stanley Jevons, Alfred Marshall, Arthur C. Pigou, Ralph G. Hawtrey, Irving Fisher, Francis Y. Edgeworth, Thorstein Veblen, Joseph Schumpeter, and John Maynard Keynes. Young used criticism as a method to advance and refine economic theory. For example, he criticized Marshall’s notion of consumers’ surplus and Pigou’s on social cost. He engaged in a long correspondence with Fisher on the theory of index numbers. He disagreed with Fisher that the general price level needed stabilizing. Young agreed with Veblen that economics needed an evolutionary approach and could be more fruitfully studied in terms of disequilibrium and cumulative causation, but disagreed that the discipline was based on a hedonistic psychology.

‘이응노의집’과 새롭게 이응노 활용하기: 창조적 파괴의 개념을 통해 본 이응노의 예술세계와 ‘이응노의집’의 미래경영

Since the early 2000s, a large number of public art museums have opened in Korea, marking public recognition of the importance of such museums. The number of public art museums will continue to grow at an increasing rate, further strengthening their influence on the society. This study intends to examine the current state of public artist museums in Korea, and then focus specifically on Maison d’Lee Ungno which opened in 2011 to commemorate Lee Ungno’s art world. It also aims to propose a future management plan for Maison d’Lee Ungno based on the concept of creative destruction. Creative destruction, a notion put forward by Joseph Schumpeter, is a process of innovating existing practices through the continual combination and adoption of new ideas. Given the relative absence of modern art museums dedicated to particular artists in Korea, the proposed plan shall incorporate the creative destruction process as its core strategy.

Joseph Alois Schumpeter’s Theory of Economic Development and Social Change

Bu çalışma Joseph Schumpeter'in kapitalizm doğası, ekonomik mantığın arkasındaki itici güçler, sosyal-kurumsal yapılar, toplum ve birey ilişkisi, toplumsal ve ekonomik evrim kavramlarına düşünürün çalışmalarından doğru bir bakış içermektedir. Schumpeter'in ekonomik sosyolojisi, öncelikle ekonominin sosyal-kurumsal sistemin parçası olduğu ve ekonomiyi incelemenin nitelikli yolunun onu bu çerçeve içerisinde değerlendirmekten geçtiğini iddia etmektedir. Kurumsalcı iktisatçıların öncüsü diyebileceğimiz Schumpeter, ekonomik faaliyetleri, kurumları ve süreçleri ancak tarihsel olarak belirlenmiş bir düzlemden anlayabileceğimizi savunmaktadır. Schumpeter, iktisatçıların çoğundan farklı olarak, ekonomiyi sadece statik değil, dinamik bir açıdan analiz etmiştir. Bu nedenle Schumpeter, ekonomik gelişmelerin gelecekte nasıl bir şekil alacağını açıklarken, bireylerin ekonomik eylemleri, teknolojik yenilikler, sermayedar ve girişimcinin özelliklerini ve kurumları incelemiştir. Schumpeter'e göre girişimci, kapitalizmin dinamizmi ile yönetimsel kapitalizmin dev bürokratik yapısı arasındaki çatışmanın belirleyeni ve sistemin yıkıcı eyleyeni olarak ortaya çıkmaktadır. Schumpeter, değişim devam ettikçe, bireylerin değişimi başlatmasının giderek daha kolay hale geldiğini ve bireylerin girişimcilik faaliyetlerinin artık yüksek düzeyde liderliğe sahip belirli kişiler tarafından yapılması gerekmediğini savunmuştur. Schumpeter kapitalizmin yeni bir ekonomik düzene doğru evriminin, adı ne olursa olsun, zorunlu olarak bir tür sosyalizm olacağını öngörmüştür.

Money is a right: Alfred Lansburgh’s Token Theory of Money

Alfred Lansburgh was a leading publicist on money in Germany during the Weimar Republic. He developed a Token Theory of Money, a nominalistic monetary theory with an endogenous quantity of money but warns of the danger of misuse. Only therefore, he combines his understanding of money as a right—as a legal claim on goods and services—with a metallistic conception of gold money. Lansburgh was misunderstood during his time, and he remains so until today. He was often described as an “orthodox gold money theorist,” but he was a passionate “token money theorist,” with many similarities e.g. to Joseph Schumpeter.

THE ECONOMICS OF BERNARD LONERGAN: CONTEXT, MODELING, AND ASSESSMENT

Bernard Lonergan S.J. (1904–1984) is unusual among major theologians in engaging deeply with economic theory. In the 1940s he developed his own dynamic multisectoral macroeconomic model, informed by readings of Adam Smith, Karl Marx, John Maynard Keynes, Friedrich Hayek, Joseph Schumpeter, and later Michal Kalecki. Lonergan’s economic research is little known because the economic manuscripts were not published in his lifetime and his interactions with professional economists were limited. In the 1970s, however, when he returned to economics he engaged with post-Keynesians and taught a graduate course on macroeconomics at Boston College until illness overtook him. This paper places Lonergan’s economic research in the context of his overall intellectual project, outlines his macroeconomic model and associated theory of the business cycle, then evaluates his contribution in relation to mid-twentieth-century macroeconomics and considers whether it has anything to offer contemporary economists. Whatever view we take of his theoretical contributions, Lonergan’s work opens up connections between economics and theology.

Creative Destruction in the Field of Healthcare

This research paper will cover in detail the evolution of telemedicine over time and its prospects while explaining the theory of creative destruction. In the past, healthcare involved medical professionals delivering specialized expertise and care to patients. Throughout most of the history of healthcare, medical care was produced and administered by a small group of professionals. Under that traditional approach, medical services were provided only through in-person consultations and exclusively in facilities that were specifically designated for the purpose of in-person consultations—such as hospitals, clinics, and private offices of medical professionals. Over time, healthcare has become more affordable and the convergence of the Information Technology sector has revolutionized the way medicine is dispensed to patients (Thimbleby). We are seeing the dawn of a new model of healthcare delivery, where in-person consultations at medical facilities are replaced by remote consultations and monitoring of the patient (Coughlin 1). Joseph Schumpeter devised the term 'creative destruction' in 1942, which he described to be a "process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one” (Schumpeter 83). This research paper will be discussing the current structure and the inefficiencies of the healthcare industry. Moreover, it will elaborate upon how telemedicine might eliminate payment models like the Fee to Service Model and how the incentives different insurers provide will be altered. Overall, this paper explores how telemedicine can possibly take over the medical industry thanks to its economic benefits and convenience.

Overcoming Schumpeter’s Dichotomy

For a given decision, when an undemocratic procedure would result in a good outcome, and a democratic procedure would result in a bad outcome, which decision procedure ought we to use? Epistemic democrats, such as Joseph Schumpeter, argue that all else being equal, we should prefer the procedure with the good outcome. Schumpeter’s argument for this position is that we must reject the view that only democratic procedures matter when evaluating government institutions (pure proceduralism), and the only alternative to pure proceduralism that can coherently describe the relationship between democracy and the public interest is pure instrumentalism. I argue that Schumpeter’s argument for epistemic democracy does not succeed. In this paper, I outline three alternative ways of conceiving of the relationship between democracy and the public interest, which I call evaluative dualism, impure instrumentalism, and impure proceduralism. I explain how, with any of these three alternative views, we can evaluate government institutions without rejecting the intrinsic value of democratic procedures or the public interest.

Образовательные инновации: становление категориально-понятийного аппарата, этапы и законы протекания

Modern society is distinguished by ongoing innovation processes, since innovation activity is a necessary condition for economic growth and improving the quality of life in any country. In this regard, education has not bypassed innovative activity. This article discusses the retrospective of the formation of the concept of «innovation». The progenitor of the definition of «innovation» was the term «novation». For the first time, the concept of «novation» appeared in legal documents of the 13th century. and denoted the obligations of the parties to replace one agreement they signed with another, which did not imply the invention of something, but simply novelty. As a self-sufficient term, the definition of «innovation» began to assert itself in the 19th century, in connection with the development of science, technology, and the industrial revolution. As a scientific term, the concept of «innovation» received its purpose at the beginning of the 20th century in the works of the Austrian economist Joseph Alois Schumpeter, which was the result of an analysis of «innovative combinations», changes in the development of economic systems. With the development of the economy, the definition of «innovation» has expanded its boundaries of understanding. Since the end of the 1950s, innovation processes in pedagogy have also been studied. In relation to the pedagogical process, innovation means the introduction of innovation in the goals, content, methods, forms of education and upbringing, as well as in the organization of joint activities of the teacher and students. There are four laws of the flow of innovation processes: irreversible destabilization of the pedagogical innovation environment; final implementation of the innovation process; stereotyping of pedagogical innovations; cyclic repeatability, recurrence of pedagogical innovations.

The Labouring Undead: Zombification as a Metaphor of Contemporary Crisis-Management

The discursive field of economics is traversed by a multiplicity of metaphors. Yet, some conceptual domains lend themselves more readily to the expression of the ideological premises of financial affairs. The period since the economic meltdown of 2007 has been defined, in this regard, by a generalized apocalyptic vocabulary. In this paper, I propose to focus on the image of zombification that has become ubiquitous in crisis-management discourses, especially in the talk of so-called ‘zombie companies,’ ‘zombie banks’, or ‘zombie economies’. This discourse articulates the prospect of widespread economic collapse due to collateralized corporate debt. Inscribed with a distinct ontology of undeath, the metaphor, then, is conductive to a specific ‘necro-economic’ gesture that naturalizes the ‘Market’ as the basis of life itself, which, however, from time to time demands sacrifices to be restored and support life again. This becomes especially clear in contemporary re-circulations of Joseph Schumpeter’s theory of ‘creative destruction’, which assert that the ‘zombies’ must be neutralized to avoid the contamination of an otherwise ‘healthy’ system. As such, though, the discourse of economic zombiism is thoroughly underpinned by an imperialist unconscious that can be traced back to the emergence of the zombie figure in the context of pre-revolutionary Haiti. I propose to read the appropriation of the ‘zombie’ by neoliberal parlance as a metaphor that capital survives by. Functioning as a form of applied horror fiction, it establishes agency for ‘impersonal’ market mechanisms that externalize economic costs onto the peripheries of capitalism. In this sense, however, I argue that the rhetoric of crisis-management merely offers an imaginary resolution to a problematic that generates zombies not as an aberration but as a matter of course. Thus, I suggest that the ‘financial zombie’ functions simultaneously as a metaphor of chronic crisis and a metaphor of systemic immunization.

Nexus Between Financial Innovation and Financial Intermediation in Nigeria’s Banking Sector

This study evaluated the relationship between financial innovation and financial intermediation in Nigeria. It seems that banks in Nigeria may have a problem of deposit-loan mismatch and losing customers to start-ups given increasing cost of deposits attributable to disruptive practice arising from financial innovations. The specific objectives of this study were to examine the relationship between financial innovation (value of the automated teller machine, internet banking, mobile banking, point of sale transactions) and financial intermediation (commercial banks deposit mobilization) in Nigeria for the period 2009–2018. This study was anchored on the financial innovation theory of Joseph Schumpeter, which states that technology creates opportunities for new profits and super profits as a result of increased investment by banks or financial institutions on products of innovation. The ordinary least square was used to estimate the parameters. The data used were extracted from the Central Bank of Nigeria statistical bulletin. The results showed that there is a positive and significant relationship between financial innovation (value of Automated Teller Machine) and financial intermediation (commercial banks deposit mobilization) in Nigeria; there is a positive but no significant relationship between financial innovation (internet banking) and financial intermediation (commercial banks deposit mobilization) in Nigeria; there is a positive but no significant relationship between financial innovation (mobile banking) and financial intermediation (commercial banks deposit mobilization) in Nigeria; and there is no positive and significant relationship between financial innovation (point of sale transactions) and financial intermediation (commercial banks deposit mobilization) in Nigeria. The f-test result showed that financial innovations proxies jointly related significantly to commercial banks’ deposits. The work concludes that financial innovations contributed to commercial banks’ deposits in Nigeria. The researchers recommended among others that banks should improve on the security of transactions done on their platforms, continue to improve and partner with start-ups in technological infrastructure, improve on power and network stability, deploy more innovative products, and improve on the efficiency of bank staff by regular training.

Method and scope in Joseph A. Schumpeter's economics: a pluralist perspective

This study aims to evaluate the ideas on the scope and method of economics of Joseph Schumpeter who is one of the important economists of the 20th century. The study consists of four sections: In the first section we underline the interesting points of his life to understand the roots, background, or 'vision' of his thought system. In the second section, we will examine his methodological views that he asserted in his first (but translated into English only in 2010) book. Third section will be concerned with his 'analysis of economics' which refers to his critics of Leon Walras's general equilibrium analysis (as static) and his own alternative (dynamics analysis of capitalist economies) about the central subject matter of economics. In the fourth section we will treat his approach about the development/evolution process of economic thought in time. The study concludes with a brief assessment: Schumpeter is one of the rare economists who can build his own thought system in the history of economics, and he embraced a pluralist perspective in the field of the methodology of economics.