Prediction that Capitalism Would Destroy Itself (Essay Sample)

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Joseph Schumpeter’s prediction that capitalism would destroy itself
Joseph Schumpeter believed that capitalism was the best system economic system, as opposed to socialism (Seldon 156). However, the renowned economist predicted that capitalism would destroy itself over the years (Bodvarsson and Berg 9). Joseph Schumpeter observed that he was actually analysing economic trends across the globe and was therefore, not guided by political persuasion (Gripsrud 54). The focus of this essay is on the two main convictions that Joseph Schumpeter saw as the antecedents to his argument on the demise of capitalism.
In the first place, Schumpeter developed the notion of “creative destruction,” a term that he used to describe the end products of innovation within capitalistic regimes (Bodvarsson and Berg 9). However, Schumpeter believed that the tools that are employed by capitalism such as the analysis of macro variables can be misleading and could therefore lead to disastrous outcomes (Gripsrud 54). However, Schumpeter noted that capitalism was well acquainted with the development of new products and process that made previous ones obsolete (Seldon127). In essence, the destructive process as envisioned by Schumpeter would revolutionize capitalism and bring in a new structure.
Another factor that can be deduced from the extrapolations of Schumpeter is based on the virtues of capitalism (Seldon133). According to Schumpeter, capitalism is characterized by steady but gradual aspects of growth. These gradual patterns are not easy to detect in the short term. Therefore, any defects in the capitalistic system might not be corrected within reasonable time.
In conclusion, Schumpeter predicted that capi...