FROM CREATIVE ACTION TO THE SOCIAL RATIONALIZATION OF THE ECONOMY - SCHUMPETER,JOSEPH,A. SOCIAL-THEORY

Schumpeter's writings on the transition from capitalism to socialism, on innovative entrepreneurship, on business cycles, and on the modern corporation have attracted muck attention among social scientists. Alt hough Schumpeter's theoretical and sociological writings resemble the works of Marx, Durkheim and Weber in that they further our understandi ng of the rise and nature of modern society, his contribution to socia l theory has yet to be assessed systematically, Arguing that Schumpete r's perspective, if understood in social theoretical terms, provides a promising starting point for the sociological analysis of the changin g relationship between economy and society, I concentrate on two eleme nts of his work that are of value to theoretical sociology today: the distinction between creative action and rational action that is fundam ental to his theory of the entrepreneur and his thesis that the succes s of the capitalist system leads to its demise.