The basic idea here briefly set forth dates back to the year 1910 and was first presented in a lecture course for laymen on the subject of “State and Society” which I delivered at the University of Czernowitz (Cernauti) in the winter of 1910-1911. Subsequently, at Columbia University in the winter of 1913-1914, I presented it at length in a course entitled “The Theory of Social Classes.” Since that time I have never altogether stopped developing my thoughts and analyzing the material on the subject, but after 1916 the topic took second place to other interests.

7. We have assumed so far that class barriers are insurmountable. This is in accord with a very widespread popular notion that not only governs our evaluation of and emotional reaction to matters in the field of class, but has also gained entry into scientific circles—for the most part only as a half-conscious axiom, attaining the dimensions of an axiomatic rule only in the case of Marxist analysis. The modern radical critique of society often rests on this asserted law, which we must now discuss.

10. We observe, furthermore, that the class structure of a people also changes by virtue of the fact that the relative social position of the classes as such undergoes shifts. A question now poses itself that is analogous to the question concerning the reasons for shifts of individual families within the class. Why and how do classes change their relative position?

20. The facts and considerations that have been presented or outlined may be summarized as follows:

Shifts of family position within a class are seen to take place everywhere, without exception. They cannot be explained by the operation of chance, nor by automatic mechanisms relating to outward position, but only as the consequences of the different degree to which families are qualified to solve the problems with which their social environment confronts them.

THE PROBLEM

IMPERIALISM AS A CATCH PHRASE

IMPERIALISM IN PRACTICE

IMPERIALISM IN THE MODERN ABSOLUTE MONARCHY

IMPERIALISM AND CAPITALISM

THE PROBLEM OF CLASSES

THE RISE AND FALL OF FAMILIES WITHIN A CLASS

WORKS BY J. A. SCHUMPETER

The Theory of Economic Development. Cambridge, Harvard University Press, 1935.

Schumpeter’s most important work. It contains the first and most explicit statement of his theory of capitalist dynamics.

Business Cycles: A Theoretical, Historical and Statistical Analysis of the Capitalist Process, New York, McGraw-Hill, 1939.

Joseph A. Schumpeter

Joseph A. Schumpeter was born in Triesch, Austria in 1883. After a European career divided among business, teaching, and active politics, he spent the last twenty years of his life until his death, in February 1950, as Professor of Economics at Harvard. Among his works are: THE THEORY OF ECONOMIC DEVELOPMENT; BUSINESS CYCLES; CAPITALISM, SOCIALISM, AND DEMOCRACY; and THE HISTORY OF ECONOMIC ANALYSIS.