Before I catalog my notes on the last section of the book, The Sage, I’d like to simply point out some excellent resources that have helped me to put Schumpeter’s work in context. Indeed, that is one of the main challenges for economists today, I think, is what was genuinely important about Schumpeter’s work and what wasn’t.
Certainly, McCraw is a strong partisan of Capitalism, Socialism, and Democracy as being the seminal piece. Before you tuck that away as Gospel, you might wan to check out Robert Solow’s review of the book for the New Republic. Solow is a central figure in economic growth and development over the past half century (help me out here, Professor Finkler) and also took courses with Schumpeter at Harvard. He wasn’t so impressed with Schumpeter’s entrepreneur, and consequently the famous Solow growth model doesn’t draw heavily on these ideas. What could have been?
Another interesting perspective on the emergence and persistence of managerial capitalism is Deidre McCloskey’s piece, “Creative Destruction versus The New Industrial State,” comparing Schumpeter to John Kenneth Galbraith; Schumpeter being the face of Harvard economics for the first half of the century and Galbraith for the second. McCloskey is an important thinker and a brilliant writer, and her piece is excellent.
Then, of course, there is the Keynes versus Schumpeter rivalry. This being a pro-Schumpeter crowd, let’s start with management uber-guru Peter Drucker’s thoughts. Certainly, this territory is covered in the text.
I’ll post more on The Sage as we move toward our meeting date.