Schumpeter's critique of Marx: A reappraisal

Abstract. The paper provides an account of Marx's position of Schumpeter's three categories: capitalism, socialism and democracy. Marx's conception of capitalism is established as more wide-ranging than sometimes thought, covering any form of society where commodities predominate, and implying a polarized class structure independent of considerations of manual or lowly labour. It is not therefore essentially a political conception, nor does its application turn on the question of private ownership. Socialism, for Marx, involves the abolition of commodities and therefore of money and the wages system. Accordingly, his conception of socialism is not one of state ownership or nationalization, as Schumpeter claims. His commitment to democracy arises from the nature of socialist society and sets him apart from vanguardist political theory. It is therefore more deeply-rooted than Schumpeter suggests.