Published by Harper and Row in New York Third edition. 1950. Cited by Richard T Gill of Harvard University in his textbooks in 1973 and 1975:
Joseph Schumpeter posed the question. Can Capitalism survive? He was himself a rather conservative economist, but he answered the question in the negative, indicating that this was his prediction but not necessarily his preference.
According to Schumpeter, capitalism ultimately destroys itself by its own success. Capitalism becomes weaker and weaker and Socialism is the heir apparent.(quoted i part II from 1950.
It is now 2010 in the 21st century,let us look at the headlines apropos of Sino-American Economics and find out the vision of economist Joseph Schumpeter who taught at Harvard in the 1940s in the 20th century.
The first Nobel Laureate in economic science,Jan Tingergen, an outstanding Dutch economist. Cited by Professor Richard T. Gill of Harvard in the textbooks published in 1973 and 1975:
"Do Communist and Free Economies show a converging pattern?
We are witnessing today the coexistence of two different economic sytems, the "socialist" and "capitalism" systems. The various names given to them are far from precise. Perhaps the most imprecise thing about them is the suggestion that each of these systems represents something well-defined and hence invariant. REALITY shows both to be in permanent change."
I have sent my blogs in the past by stating that so-called economic systems do not mean much. There are public and private sectors in any nation. The current headlines in the media should take note of the vision of economist Schumpeter who was the first Nobel winner in economic science in 1969. Paul Samuelson of MIT was the first American winner in 1970.
"The nature of the change can prove quite fascinating and the changes are converging movements. On the one hand each system is learning from experience and trying to overcome some of its own weaknesses. On the other hand the systems begin to influence each other more and more."
Let us watch the changes in the American economy and China's economy to learn the refinements as time goes on in the 21st century.
Francis Shieh a.k.a. Xie Shihao, a lifelong graduate student from China trying to learn the applied economics in USA and in China.
February 1, 2010 at 2.10 p.m.