Heterodox Economists: Joseph Schumpeter

This episode explores the economic and political thought of Joseph Schumpeter, an Austrian economist known for his work on entrepreneurship, innovation, and democracy. The discussion begins with Schumpeter's biography, highlighting his intellectual formation in late 19th and early 20th century Vienna and his later academic career in the United States. Against the backdrop of Schumpeter's biography, the conversation pivots to his economic theories, particularly his emphasis on the role of entrepreneurs in driving economic growth through innovation, which he saw as a process of "creative destruction" that disrupts economic equilibrium. More significantly, the hosts discuss Schumpeter's views on monopolies, which he saw as a temporary but necessary outcome of successful innovation, though he also worried about the bureaucratization of capitalism. As the discussion pivoted to Schumpeter's political thinking, the hosts unpack his critique of democracy, arguing that he viewed it as a mechanism for selecting elites rather than a true expression of the popular will. The conversation ends by evaluating Schumpeter's foreign policy views, particularly his skepticism of interventionist policies and his sympathies towards Imperial Japan, reflecting a broader conservative European perspective concerned about the rise of socialism and the Soviet Union.