Re: RE: Re: RE: Krugman.........faux Schumpeterian

["Ian Murray" <seamus2001@xxxxxxxxx>]

----- Original Message -----
From: "Devine, James" <jdevine@xxxxxxx>

>
> What was Schumpeter's quote about the rationality developed
> within capitalism turning against the rationality *of*
> capitalism?

I don't know that line, but PK sounds more like the growing view (e.g., of
Stiglitz) that capitalism needs a lot of supporting institutions (e.g., good
accounting) to keep it going.

===============

Here's one of Schumpeter's assertions from C,S & D; its not the exact one I was thinking of which I
haven't tracked down in my papers yet but it's close to it and springs from the same issues:

"Thus the modern corporation, although the product of the capitalist process, socializes the
bourgeois mind; it relentlessly narrows the scope of capitalist motivations; not only that, it will
eventually kill its roots." (Schumpeter 1942, p. 156.)

Ian