Schumpeter, Joseph Alois (1883–1950)

Schumpeter is best known for his seminal work in economics, but he also made important contributions to the fields of political science and sociology. He aimed to create a broad economic science that he called ‘social economics’ (Sozialökonomik), which was to include not only economic theory but also economic history, statistics and economic sociology. Inspiration for this project came in particular from his colleague Max Weber.

As an economist Schumpeter is primarily remembered for his theory of the entrepreneur and for his emphasis on the dynamic aspects of economic reality: capitalism, as he saw it, meant first and foremost change. But Schumpeter also made a number of interesting observations about theorizing in economics and the role that vision plays in the work of the economist. His trenchant critique of the conventional theory of democracy and advocacy of a more realistic theory is generally recognized as a major contribution to political theory. Many of Schumpeter’s most important ideas on economics and politics can be found in his bookCapitalism, Socialism and Democracy (1942), which has become something of a classic in the social sciences.