Economics Dictionary of Arguments

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Bureaucracy: Bureaucracy is a hierarchical organizational structure characterized by standardized procedures, clear roles, and formal rules governing decision-making within a system or institution.
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Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments.

 
Author Concept Summary/Quotes Sources

Joseph A. Schumpeter on Bureaucracy - Dictionary of Arguments

Sobel I 33
Bureaucracy/Schumpeter/Sobel/Clemens: (…) while [Schumpeter] agreed with Marx's conclusion that capitalism would be replaced by socialism, he firmly disagreed with the cause of the transition.
>Capitalism/Schumpeter
, >Karl Marx, >Marxism.
Schumpeter instead believed that capitalism would be destroyed by its very economic success as it produced an intellectual class that would subsequently work to undermine the systems of private property and private contracting that underpin the economic system of capitalism. Contributing to this transition, Schumpeter also believed that entrepreneurship and innovation would become bureaucratic within big firms and carried out as a routine matter based on specialists:
„We observe ... the individual leadership of the entrepreneur tends to lose in importance and to be increasingly replaced by the mechanized teamwork of specialized employees within large corporations ... [and] that the capitalist process by its very success tends to raise the economic and political position of groups that are hostile to it … shifting of economic activity from the private to the public sphere, or, as we may also put it, toward increasing bureaucratisation of economic life.“ (EOE(1): 207-208)
>Entrepreneurship/Schumpeter, >Interventionism.

1. Schumpeter, Joseph A. (2008). Essays on Entrepreneurs, Innovations, Business Cycles, and the Evolution of Capitalism. Edited by Richard V. Clemence.

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Mause I 71
Bureaucracy/Schumpeter: Thesis: Capitalism is increasingly shaped by large bureaucratic enterprises, which would displace traditional, innovative owner-entrepreneurs; through the growing influence of these large enterprises, the state (as a counterweight, so to speak) would play an increasingly important role in economic life - a development that would eventually end in socialism.(1)
>Capitalism, >State capitalism, >Socialism.

1. J. A. Schumpeter, Capitalism, socialism, and democracy. New York 1942; [dt. Kapitalismus, Sozialismus und Demokratie, Tübingen/Basel 2005].

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Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments
The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition.

EconSchum I
Joseph A. Schumpeter
The Theory of Economic Development An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle, Cambridge/MA 1934
German Edition:
Theorie der wirtschaftlichen Entwicklung Leipzig 1912

Sobel I
Russell S. Sobel
Jason Clemens
The Essential Joseph Schumpeter Vancouver 2020

Mause I
Karsten Mause
Christian Müller
Klaus Schubert,
Politik und Wirtschaft: Ein integratives Kompendium Wiesbaden 2018


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