ONEHistory of Economics Assignment Two Sections
Part One – According Schumpeter’s definition, use his opinion to briefly describe how & why the 5 entrepreneurs listed here that fit his theory in 1-3 paragraphs each (per subject)?
Joseph Schumpeter talked about “creative destruction of capitalism,” and how entrepreneurs are rare individuals, who have massive impact on the world. Briefly (in Schumpeter’s definition) and briefly tell & describe, elaborate as to why & how these top five entrepreneurs and particular individuals stand out past & present?
1. Sir Richard Branson, (Galactic Space Tourism) 2. Mark Zuckerberg (Facebook), 3. Sara Blakely (Spanx-intimate apparel) 4. Air B&B founders, (Brian Chesky, Joe Gebbia, Nathan Blecharczyk), 5. Sam Walton (Walmart)
QUOTE; Joseph Schumpeter.
· Joseph Schumpeter (1883-1950). Austrian-born Harvard professor Schumpeter argued that entrepreneurs provide creative innovation and leadership. His most important book about this topic was Theory of Economic Development (written in German in 1911, translated into English in the 1930s). Schumpeter outlined the role of what he called, “creative entrepreneurship,” which offers the primary causes of real economic growth. He offered a routine-innovation-routine theory of economic growth. Schumpeter said that most economies are in states of steady equilibrium, “like blood circulated in an animal,” as how he put it. This regular flow is broken infrequently by innovation that drastically enhances productivity, creating increased outputs and a new equilibrium. Entrepreneurs, according to Schumpeter, do not merely run a business, but break the routine, become leaders as others follow, creating a new routine. According to Schumpeter, entrepreneurs are rare, monumental individuals who destroy old ways of doing business and revolutionize business with their innovations: they are men like Henry Ford or Thomas Alva Edison. They foster what Schumpeter called the “creative destruction of capitalism,” where new innovations destroy old ways and create something new that changes the economy thoroughly, causing ripple effects through the entire society. So, Steve Jobs and Bill Gates would be prime examples of Schumpeter’s entrepreneurs, changing how the developed world does business with their innovations in computing and communications.
· Part Two
About two differing interpretations on the “origins of capitalism”. Compare classical/liberal economists theory that (capitalism is the natural and has always existed in some form), with the view of Marxist and those who agree with his comments (capitalism is tied to specific political and economic conditions and was born in the 1700-1800s)? Defend one of those views with reasoning, evidence, and examples in 5-7 paragraphs of competent, scholarly, professionally written content that is plagiarism free and complete.