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Comparative Economics: Question: Schumpeter, Creative Destruction and Monopoly. According to Schumpeter increase in output and growth in a capitalist system is not an evolutionary process characterized by gentle and consistent growth. It is a process of 'creative destruction' carried out amidst the tumult of technological innovation. In contrast to the classical or neo-liberal philosophy and equilibrium models Schumpeter argues that monopolies are not inherently bad and may, in fact, have positive impacts on economic development in certain situations. This report details the links between Schumpeter's theories of creative destruction and monopolies. 16 pgs. Bibliography lists 6 sources.
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