"Joseph Schumpeter's classic Capitalism, Socialism, and Democracy explains the process of capitalism's "creative destruction"-a key principle in understanding the logic of globalization." --Thomas L. Friedman, Foreign Policy

In this definitive third and final edition (1950) of his masterwork, Joseph A. Schumpeter introduced the world to the concept of "creative destruction," which forever altered how global economics is approached and perceived. Now featuring a new introduction by Pulitzer Prize-winning Schumpeter biographer Thomas K. McCraw, Capitalism, Socialism and Democracy is essential reading for anyone who seeks to understand where the world economy is headed.

"The most important economist of the twenty-first century might actually turn out to be not Adam Smith or Keynes, but Joseph Schumpeter. One of Schumpeter's most important contributions was the emphasis he placed on the tremendous power of innovation and entrepreneurial initiative to drive growth through a process he famously characterized as 'creative destruction.' His work captured not only an economic truth, but also the particular source of America's strength and dynamism. . . . The entrepreneurial spirit that Schumpeter recognized in the early twentieth century will continue to drive the American economy in the twenty-first century." --Lawrence H. Summers, former Secretary of the Treasury

"Schumpeter gave us stunning insights into how the world really works. We are now living, it is said, in the Age of Schumpeter. . . . A half century ago, he published his classic Capitalism, Socialism and Democracy: a book admired by economists . . . Schumpeter was a powerful prophet, and he now offers dazzling insights into everything from the rise of Wal-Mart to prosperity's discontents. He is best known for his evocative phrase "creative destruction." Schumpeter saw capitalism as a system that produces material progress- rising living standards, more creature comforts - through the turmoil of new technologies and business methods. The 'entreprenuer,' a man of great vision and energy (in his day, there were few women in business), was the driving force of change. Sam Walton and Wal-Mart fit his theory perfectly. Indeed, Schumpeter's idea of chaotic capitalism seems everywhere confirmed." --Robert J. Samuelson, Newsweek

"If Keynes was the most important economist of the 20th century, then Schumpeter may well be the most important of the 21st. . . . . his economic understanding was brilliant . . . he tried to set long-term economic growth--entrepreneurship and enterprise--at the top of the discipline's agenda. . . . Capitalism, Socialism, and Democracy is superb." --J. Bradford DeLong, Chronicle of Higher Education

"The great economist Joseph Schumpeter highlighted the role of innovation in powering the rise of new industries, the creative destruction of existing ones, and the growth in prosperity of economies." --Richard Florida, The Atlantic

"The most influential economist of the 20th century. . . . The years since this book first appeared have surely proved Schumpeter to be a major prophet." --Peter Drucker, Fortune