Course Hero. "Capitalism, Socialism, and Democracy Study Guide." Course Hero. 26 Apr. 2019. Web. 10 Aug. 2020. <https://www.coursehero.com/lit/Capitalism-Socialism-and-Democracy/>.
Course Hero. (2019, April 26). Capitalism, Socialism, and Democracy Study Guide. In Course Hero. Retrieved August 10, 2020, from https://www.coursehero.com/lit/Capitalism-Socialism-and-Democracy/
(Course Hero, 2019)
Course Hero. "Capitalism, Socialism, and Democracy Study Guide." April 26, 2019. Accessed August 10, 2020. https://www.coursehero.com/lit/Capitalism-Socialism-and-Democracy/.
Course Hero, "Capitalism, Socialism, and Democracy Study Guide," April 26, 2019, accessed August 10, 2020, https://www.coursehero.com/lit/Capitalism-Socialism-and-Democracy/.
Schumpeter considers the ways in which capitalism will destroy itself:
Schumpeter directly addresses the factors which mean capitalism will undermine itself. These are, as has been previously noted, sociological factors, not economic ones. These sociological factors can be compared with those he described in his Marxist analysis in Part 1. While they echo Marx in some ways, there is otherwise little in common. Schumpeter does not consider there to be a class struggle as Marx does, but Schumpeter does think that technological developments will ultimately be a detriment to entrepreneurs. That element is a distinct echo of Marx's immiseration theory of capitalism, in which businesses chase technological development at the expense of workers.
Creative destruction proves to be a blessing and a curse. Capitalism sees nothing that it cannot destroy and remake to capitalist ends, unfortunately including the foundations and support structures of capitalism. This important element of Schumpeter's argument is a result of his insistence on considering the historical and social circumstances of capitalist development. Capitalism did not arrive in a vacuum, and capitalism as an economic model cannot be fully distinguished from the culture it created.