Bourgeoisie Problem

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opportunity. In this instance the profit rate of interest would go to zero and the bourgeois reliant on those means would disappear and industry and trade would acquire the characteristics of a bureaucracy. Eventually the Bureaucracy will expropriate its owners, the entrepreneurs, as well as the bourgeoisie. Effectively destroying the bourgeois income and function. (Heilbroner 1997; 318) Whilst Schumpeter views state intervention as an eventual outcome, Polanyi views it as an ongoing process that requires the integration of the morals of society at the time.

Creative Destruction and Social Change

“By innovating and offering new products in the market the entrepreneur creates temporary monopoly control in the market place. However, this monopoly control would not be long lived since new entrepreneurs would develop yet new products and new production
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Throughout its run capitalism has received its fair share of criticisms often about external issues like the vanishing investment opportunities but there are two internal causes that Schumpeter points to as key motivators in capitalisms eventual demise. The first being the evaporation of the substance of property. By this Schumpeter means modern capitalism has bled the life out of the idea of private property. Eventually no one will be tied emotionally to land and there will be increased detachment as well as irresponsibility tied to ownership as land value continues to climb, Schumpeter goes on to explain that the modern businessman's motivation is no longer tied to ownership but through the socialization of modern corporations his concerns mirror those of a bureaucratic organization constantly narrowing their motives
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