Interested in Socialism

[abaris]

Basically, Schumpeter predicts that capitalism, because of its unarguable success, will lead to corporatism, a model in which corporations and corporate-like entities will have an undue influence on politics and economics.  This, in turn, will cause more (and more far-reaching) social welfare programmes in capitalist economies - due to a general feeling that governments are being 'bought' - , eventually giving way to socialism in some form or other.

It's hard to argue with his first claims. We already have corporatism in the Western world. The second part about more social welfare programmes being introduced is where he's wrong. For one because there no longer is an opposing system such as the communist block. The curve winds downwards as far as welfare programmes are concerned. Wherever conservatives are in power they try to abolish what already was in place for decades.

Second, there's the global economy. Which makes it much easier to outsource and to starve national economies and the workforce. We constantly hear about cutting the minimum wages, so corporations don't move their sweatshops overseas. To what end, since someone has to buy the shit they're producing - prefarably in the West.

So, going by the development of the last two or three decades, I can't come to the same conclusions as Schumpeter. Socialism in some form or the other isn't on the horizon. I rather see something like what was called Manchester capitalism in the not too distant future.