Tuesday, December 20, 2011

Joseph Schumpeter - Dynamic Disequilibrium

So what does a healthy economy look like?
According to Keynes it's in static equilibrium...... (nice steady growth stabilized with government intervention, with no pesky variance in economic output)
According to Schumpeter it's in dynamic disequilibrium.... (creatively destroying itself through innovation)
Check this sweet paper out about Schumpeter and the Dynamics of Capitalism

What is interesting is that... he's all about the power of the innovator.... and the idea that once capitalism has  made it's full run.... and a country is run by a few large corporations... that it would eventually turn in on itself and turn socialist by evolutionary design... an interesting thought given the times...

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