Biography Joseph Schumpeter

Joseph Alois Schumpeter is an Austrian and American economist, sociologist and historian of economic thought. Born on February 8, he was the son of a small clothing manufacturer. When Joseph was four years old, his father died, and he and his mother lived in rather difficult material conditions, until seven years later she married General von Celer, who commanded the troops of the Vienna garrison and belonging to the generic Austrian aristocracy.

This provided Shumpeter with the opportunity to enter the Lyceum closed by the Austrian nobility in Vienna, which was famous for the high level of teaching of ancient and new languages. Since the year, the open gymnasium of the Terezian Academy fund studied at Teresanum. Teresanum, German. Theersianum is a private school on public rights located in the Vienna region visible.

In the city of Schumpeter, he entered the Faculty of Law and Political Sciences of the University of Vienna and studied in it in the city of in - gg. Graz Stiria, where he was the only full -time teacher of economic sciences. In gg. The beginning and the very flow of the First World War made a deep impression on him and only at the end of G. - years he held the post of Minister of Finance of Austria.

Professor Rhine Bonn, and Harvard University, in which he began to teach for several months. Schumpeter finally moved to the United States and began to teach again at Harvard University. President of the Economic Society in - GG. President of the American Economic Association in the year. The dead of January 8, in the year in honor of the merits of the economist and to study his work, “International Society of Joseph Schupeter” was created; In the year, the Schupeter Institute was founded in Berlin.

Part of the scientist’s personal library is stored at the Tokyo University of Hitotsubasi Library of Shumpeter. In the year, in the house where the economist was born in the city of Tresh, the president of the Czech Republic V. Schumpeter developed not so much the theory of waves as a successful method for understanding cycles in general. Wars, revolutions, social unrest, government policy, earthquakes and growing agricultural crops are considered exogenous.

Innovation played a central role in the theory of Shumpeter. This can be the production of a new product, the introduction of new forms of organization, such as the merger, opening a new market, etc. At the same time, characterizing its creative role in creating a new way of destroying the old, he popularized the term “creative creative destruction” [3,] in the economy.

Innovation differs from the invention, which is, so to speak, with raw material for innovation. Innovation requires much greater effort than the usual business because they provide for the introduction of non -experienced. Schumpeter suggested that innovations are introduced by new people and new firms. But there are exceptions - cases of giant companies that are a frame for shift personnel, which in turn sequentially conducts innovations.

Schumpepeter called this phenomenon to trust capitalism in order to distinguish it from competitive capitalism. Money is taken thanks to the creation of a loan or have a source of budget subventions. Savings appear mainly due to profits, which in turn mainly come from innovation. Therefore, according to the logic of savings, in the end, are also formed from the loan. For the company, this is called accumulation.

Savings and accumulation differ from retention from consumption and creation of stocks; Savings in the understanding of Shumpeter can never be the cause of the crisis. For households, this means buying shares, bonds, land and real estate. Therefore, savings and investments are different events. The importance of the Valras system is the tendency of the economy to balance, which is observed in real life.

Real life, of course, does not provide the requirements of the Valras system, but also does not destroy its significance. Entrepreneurs, conducting innovative activities during a higher wave and moving the economy above equilibrium, provide a base for technological rents and, as a result, well -being. But technological annuities are reduced as previous innovations become established by practice in economic life.

Therefore, a lowering wave appears. Schumpeter claimed that we should expect an infinite number of cycles. However, for the analytical convenience in his historical essay, he founded a tricyclic scheme: a cycle of Kitchin years, a jigwo, Kondratiev years. And in this a priori scheme, he foresaw the fractals of Benois Mandelbrot, opened after 30 years. Since the aforementioned cycles interface among themselves, it is probably impossible to say what the final result will be, except for the assumption that if all three are in the same phase, in particular, in depression, the development of events will be accompanied by extraordinary intensity, as happened, in his opinion, during the great depression.

No more, as for illustration, Schumpeter proposed a diagram that shows three sinusoids and the result of their addition.Chronologically, Schumpeter discovered three three -year cycles of Kitchin [Economic reality indicates that it happens and two] in each nine -year -old Jugus cycle and six jigwo cycles in every fifty -year -old Kondratiev cycle. From this theory, it follows that the production of consumption goods increases more during recession and stabilization.

The production of means of production should increase in the phases of stabilization and rise and decrease, or slowly increase in the phases of recession and depression. A prolonged drop in prices during the period of depression tends to be adjusted during stabilization, but since the volume of production continues to increase during stabilization, the correction is not completed.

So, the uncertainty in the behavior of the interest rate continues during the period of stabilization, which should return the interest rate to the value close to the equilibrium. With a cyclic movement built in accordance with our model, provided that this movement is limited by one country and the economic process in others is stationary or only increasing, export will increase, and imports decrease in a positive phase.

In the negative phase, everything will be the other way around. Also, the prices for shares will fall by the moment when other indicators change, that is, if restrictions and difficulties appear at the last stage of rise, it becomes clear that possible achievements have exhausted themselves. Cash rates of wages increase with delay during the rise and fall with a lag with a lower wave.

And a decrease in wages is not a mandatory phenomenon both in the recession and during the period of depression. Real rates increase more in recession, depression and stabilization than during the rise, especially for the waves of Kondratiev. During the lifting phase, production expenses are increasingly putting on profit, and the recession phase brings real problems for many companies.

All these expectations interact with external factors. Each error in expectations does not discredit the theory presented, since in this case external exogenous factors that explain the deviations can be found. During the Great Depression, a discussion was spreading to the causes of the stagnation of running at the site of the economy, especially after a sharp decline in the year and the second wave of the crisis of the GG.

Schumpeter, on the one hand, argued that the decline in the economy before the complete revival was the result of a new course, although the consequence is not as much of its essence as the anti -gap philosophy of those who led it. The very great depression, as indicated above, he explained by synchronization during the gg. Scientists also explain the current global economic crisis by synchronizing the crisis phases of even more cycles, not only economic, but also socio-political and even civilizational.

The main works of J. Schupetera: 1. Theory of economic development Theorie Der Wirtschaftlichen Entwicklung, Schumpeter J. Theory of Economic Development. Business cycles: theoretical, historical and statistical analysis of the capitalist process. In 2sh. Schumpeter Josef Alois. Capitalism, socialism and democracy Capitalism, Socialism and Democracy, Capitalism, Socialism and Democracy.

Ten great economists from Marx to Keynes. History of economic analysis. In 3 tons. In addition, Richard Sedberg’s new introduction to him is already in Clemens: 6. Essays on Entrepreneurs, Innovations, Business Cycles, and the Evolution of Capitalism.

Schumpeter; Ed. Clement; with a new introduction by Richard Swedberg. All materials of the IEE and members of the Public Organization “Institute of the Evolutionary Economy”, posted on the IEE website, are the object of copyright and are protected in accordance with the legislation of Ukraine. With the full or partial use of the materials of the IEE site, the link to the author and the site is required.

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