Season 1 · Episode 331
Joseph Schumpeter and creative destruction
This week Steve Keen looks at the work of Joseph Schumpeter, who argued if economies were in a state of equilibrium, then the profits of companies would always be zero. Listen in for more.
Debunking Economics - the podcast · Steve Keen & Phil Dobbie
December 28, 202234m 53s
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Show Notes
This week, another economist that has influenced Steve Keen’s thinking; the Austrian born economist Joseph Schumpeter. His economic thinking veers a long way from the traditional Austrian school. As Steve explains this week, Schumpeter argued that if an economy was always moving to or from a point of equilibrium, then it follows that the profit of companies will always be zero. Only through innovation will those businesses get ahead, with means money invested in older technologies will no longer be rewarded. This was Schumpeter’s argument for Creative Destruction, an idea so basic you wonder why nobody had made the observation before him.
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