Towards a general theory of modern capitalism

This chapter argues that in the writings of Weber and Schumpeter are contained the elements of a comprehensive theory of the origins, foundations and operation of modern capitalism. It establishes that their contributions are not only largely compatible but complement each other and can be synthesized to produce a coherent theory of the totality of modern capitalism. The chapter maintains that the key elements of a general theory of modern capitalism are contained in the combination of Weber&s;s ideal type of rational capitalist enterprise with Schumpeter&s;s account of the process of capitalist evolution. It seeks to show that Weber&s;s account of the institutional framework of capitalism is largely adequate in relation to Schumpeter&s;s account for the operation of the market system. Weber provides the sociological complement to Schumpeter&s;s economic theory, whereas Schumpeter provides an economic theory that accounts for the ongoing operation of the system that had first arisen in the modern era.

Capitalism · Economics · Neoclassical economics · Political science · Sociology · Law · Political Economy and Marxism