Schumpeter predicted socialism via competition’s centralizing effects, not capital’s contradictions

Evidence

For Schumpeter, capitalism cannot avoid this concentration; .it cannot avoid a sort of transition to socialism being brought about within its own development, since this, for Schumpeter, is what defines socialism: “a system in which a central authority will be able to control the means of production and production itself.,, So the transition to socialism is not inscribed in the historical necessity of capitalism by virtue of an illogicality or irrationality specific to the capitalist economy, but due to the organizational and social necessity entailed by the competitive market. — Michel Foucault, The Birth of Biopolitics, 949

Categorization

• XREF: Schumpeter’s market-driven movement toward centralization parallels the reader’s earlier material on how private market institutions reproduce state-like hierarchy. — connects to: Schumpeter traced capitalism’s crises to a distinctive capital structure. — Mark Blyth, Austerity: The History of a Dangerous…, 322; Schumpeter saw capitalism’s rationalization destroying the entrepreneur’s heroic social function — Mark Blyth, Austerity: The History of a Dangerous…, 350; Schumpeter predicted capitalism’s end from entrepreneurial decline. — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 263 (+5 more)

Broader Connections

• Both Schumpeter and ordoliberals rejected Marx’s internal-contradiction thesis of capitalism #corroborates (0.85) — Michel Foucault, The Birth of Biopolitics, 947
• Monopolies express competition rather than contradict it #corroborates (0.75) — Clara E. Mattei, Escape from Capitalism, 138