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Tuesday, May 03, 2011

Schumpeter: Theory and Practice

"Both economists and popular writers have once more run away with some fragments of reality they happened to grasp.These fragments themselves were mostly seen correctly. Their formal properties were mostly developed correctly. But no conclusions about capitalist reality as a whole follow from such fragmentary analyses." -- Can Capitalism Survive?

2 comments:

  1. In discussing conclusions about "reality", Schumpeter here seems to be talking about the distinction between theory and history, not theory and practice.

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  2. Perhaps, Daniel, but in the context it seems to me he is talking about what policy conclusions are to be drawn, which, of course, is a practical matter.

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