Schumpeter blamed the Depression on organizational change, not austerity’s failure.

Evidence

Schumpeter attributes the failure of austerity to two conjoined mechanisms: the substitution of the large conglomerate and the manager for the small firm and the entrepreneur and the collapse of the risk-taking culture that supported entrepreneurial activities. … By 1942 Schumpeter hadn’t changed his tune, or his mind: he had simply lengthened the time frame and added in a few harmonies. — Mark Blyth, Austerity, 346

Categorization

• XREF: Connects to Mattei and the broader austerity literature on how austerity’s defenders explained away its failures by positing structural causes. — connects to: Schumpeter explained austerity’s failure through the bureaucratization of large firms — Mark Blyth, Austerity: The History of a Dangerous…, 349

Broader Connections

• Schumpeter explained austerity’s failure through the bureaucratization of large firms #expands (0.95) — Mark Blyth, Austerity, 349