Schumpeter's History of Economic Analysis

[Publication Metadata and Bibliographic Information]: Bibliographic information for Jacob Viner's review of Schumpeter's History of Economic Analysis, including publication details, JSTOR access terms, and the article title. [Introduction to Schumpeter's History of Economic Analysis]: Viner introduces Schumpeter's posthumous work as a monumental achievement in the history of economic thought. He characterizes Schumpeter as a versatile polymath whose mastery of multiple disciplines—including history, sociology, and mathematics—allowed him to write a history of economic theory on an unprecedented scale. [Methodology and Scope of Schumpeter's History]: This section examines Schumpeter's deliberate focus on 'economic analysis' rather than general social doctrine. Viner details Schumpeter's four techniques—history, statistics, theory, and sociology—and critiques his exclusion of common-sense explanations and metaphysical propositions, while questioning Schumpeter's inconsistent standards for the realism of theoretical assumptions. [The Separation of Analysis from Values and Ends]: Viner critiques Schumpeter's insistence that economic analysis is entirely separate from philosophy, ethics, and the selection of social ends. While Schumpeter views analysis as a neutral tool for finding means to given ends, Viner argues that economic analysis inevitably influences the rational selection and revision of those ends by exposing contradictions or costs. [Critique of Content Organization and Bibliographic Style]: Viner evaluates the structural flaws of the book, noting that much of it is 'name-ridden' and contains excessive general intellectual history unrelated to economic analysis. He suggests that while the book is a brilliant reference, it suffers from an incomplete index and a lack of focus on primary analytical reporting in favor of broad cultural history. [Schumpeter's Appraisal of Major Economic Systems]: Viner praises Schumpeter's masterful summarization of major theoretical systems, particularly those of Cantillon, Quesnay, Marx, and the Marginalists. He notes Schumpeter's ability to highlight the analytical framework of these authors with self-effacing brilliance, despite Schumpeter's own underlying theoretical disagreements. [Critique of Ancient and Scholastic Economic Thought]: Viner disputes several of Schumpeter's interpretations of pre-classical thought, including the significance of Plato's division of labor and the attribution of a labor theory of value to Aristotle. He specifically critiques Schumpeter's apologetic defense of the scholastic usury doctrine, arguing that the distinction between money-loans and other investments was based more on dogma than sound economic analysis. [Mercantilism and the Critique of Adam Smith]: Viner addresses Schumpeter's defense of mercantilist policies and his surprisingly harsh treatment of Adam Smith. Schumpeter argues that Smith lacked analytical originality and was biased against big business; Viner counters that Schumpeter's own 'ideology' may have clouded his objectivity regarding Smith's contributions. [The Ricardian System and Price Theory]: Viner defends Ricardo against Schumpeter's charge that he rejected demand-and-supply for 'natural price.' He argues that the differences between Ricardo and Malthus were largely semantic and that Ricardo's focus on constant-cost cases does not imply a rejection of the fundamental role of demand in price determination. [Population Theory and the Malthusian Debate]: Viner critiques Schumpeter's dismissal of Malthusian population theory as trivial. While Schumpeter favors Botero's earlier work, Viner points to the historical reality of 18th-century England—including the Poor Laws and settlement laws—as evidence that population growth was a substantive economic problem that Malthus correctly identified. [International Mechanism and Marginal Utility]: Viner discusses the international trade mechanism and the transition from Ricardian to 'Austrian' value theory. He defends the Marshallian view that costs (as disutilities) remain a fundamental regulator of value alongside utility, contrasting this with the Austrian/Walrasian approach that treats factor quantities as constants. [Technical Analysis: Production Functions and Monetary Theory]: In the final section, Viner engages with technical aspects of Schumpeter's critique, including Marshall's consumer surplus and the properties of first-order homogeneous production functions. He concludes by questioning Schumpeter's requirements for the quantity theory of money, arguing for its validity as a tool for price level regulation.