Joseph Schumpeters classic Capitalism Socialism and Democracy explains the process of capitalisms creative destructiona key principle in understanding the logic of globalization. Thomas L. Friedman Foreign Policy In this definitive third and final edition 1950 of his prophetic masterwork Joseph A. Schumpeter introduced the world to the concept of creative destruction which forever altered how global economics is approached and perceived. Now featuring a new introduction by Pulitzer Prizewinning Schumpeter biographer Thomas K. McCraw Capitalism Socialism and Democracy is essential reading for anyone who seeks to understand where the world economy is headed. The most important economist of the twentyfirst century might actually turn out to be not Adam Smith or Keynes but Joseph Schumpeter. One of Schumpeters most important contributions was the emphasis he placed on the tremendous power of innovation and entrepreneurial initiative to drive growth through a process he famously characterized as creative destruction. His work captured not only an economic truth but also the particular source of Americas strength and dynamism. . . . The entrepreneurial spirit that Schumpeter recognized in the early twentieth century will continue to drive the American economy in the twentyfirst century. Lawrence H. Summers former Secretary of the Treasury Schumpeter gave us stunning insights into how the world really works. We are now living it is said in the Age of Schumpeter. . . . A half century ago he published his classic Capitalism Socialism and Democracy a book admired by economists . . . Schumpeter was a powerful prophet and he now offers dazzling insights into everything from the rise of WalMart to prosperitys discontents. He is best known for his evocative phrase creative destruction. Schumpeter saw capitalism as a system that produces material progress rising living standards more creature comforts through the turmoil of new technologies and business methods. The entreprenuer