Capitalism, Socialism and Democracy

On one level, Capitalism, Socialism and Democracy can be seen as a descriptive work of sociology and economics. The text analyzes social phenomena and extrapolates predictions about the future. At the same time, it can be read as the articulation of conservative political philosophy. It gives voice to a specific set of values, and how the author thinks the world should be, rather than just describing it.

Schumpeter’s constellation of values can be seen at many points throughout the text. It is present in Schumpeter’s criticisms of Marx. Discussing Marx’s theory of the relation between classes, Schumpeter says that “it should be obvious that their relation is, in normal times, primarily one of cooperation” (19). He objects to Marx’s emphasis on class antagonism and resulting revolution. Instead, Schumpeter stresses the traditional and necessary character of certain hierarchical relations. This is also why he is highly critical of anarchism and direct democracy. Such ideas try to do away with respect for leadership and authority altogether. Schumpeter expresses admiration for traditional institutions like the family and childrearing. As he says, it represents “the greatest of assets,” namely “the contribution made by parenthood to physical and moral health—to ‘normality’ as we might express it” (158).