Capitalism, Socialism, and Free Enterprise

Joseph Schumpeter wrote an enlightening book entitled Capitalism, Socialism and Democracy. It deals with the economics of capitalism, socialism and the death of free enterprise. First published in 1942, it sheds some light on our society today, especially on some of the thought coming from our liberal universities and burgeoning governments who place a heavy tax burden on its citizenry. Here’s a summary of Schumpeter’s book from Wikipedia.

“Schumpete’s theory is that the success of capitalism will lead to a form of corporatism and a fostering of values hostile to capitalism, especially among intellectuals. The intellectual and social climate needed to allow entrepreneurship to thrive will not exist in advanced capitalism; it will be replaced by socialism in some form. There will not be a revolution, but merely a trend in parliaments to elect social democratic parties of one stripe or another. He argued that capitalism’s collapse from within will come about as democratic majorities vote for the creation of a welfare state and place restrictions upon entrepreneurship that will burden and eventually destroy the capitalist structure. Schumpeter emphasizes throughout this book that he is analyzing trends, not engaging in political advocacy. “If a doctor predicts that his patient will die presently,” he wrote, “this does not mean that he desires it.”

In his vision, the intellectual class will play an important role in capitalism’s demise. The term “intellectuals” denotes a class of persons in a position to develop critiques of societal matters for which they are not directly responsible and able to stand up for the interests of strata to which they themselves do not belong. One of the great advantages of capitalism, he argues, is that as compared with pre-capitalist periods, when education was a privilege of the few, more and more people acquire (higher) education. The availability of fulfilling work is however limited and this, coupled with the experience of unemployment, produces discontent. The intellectual class is then able to organise protest and develop critical ideas against free markets and private property, even though these institutions are necessary for their existence.”

Have these liberal intellectuals and our governments destroyed free enterprise and the fundamental right to private property?  Are we going to sit back and let them steal our forefathers’ legacy that was won with their sweat and blood?  Is this the new American spirit?  What can you do to prevent this from happening in our community, state and nation today?  Let’s hear from you.

Submitted by Dan Abbott

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