Schumpeter predicted how capitalism would
transform itself into socialism via success.
"His basic argument goes like this: an entrepreneurial market economy
generates tremendous growth and increases living standards. Ironically
though, it becomes so prosperous and innovative it loses sight of the
source of its wealth, and even becomes hostile toward it.
Entrepreneurship enriches society so much that people forget how
necessary and how fragile the market economy really is. They even start
to believe that markets—and the liberal social order that supports
them—are inferior to government bureaucracy and central planning.
Eventually, society embraces socialism."
Pretty spot on, but you can't forget government's ever-increasing interventions making appear capitalism is at fault.
"Actually, Schumpeter’s argument makes much more sense in the context of interventionism than it does in a genuinely free society.
When the public sector increases, entrepreneurs are simultaneously
crowded out of the market and blamed for the problems created by
policymakers."
Like I said.
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