Joseph Alois Schumpeter · 1919
This file is a newspaper report of a 1919 Viennese public lecture by Joseph Schumpeter. Its scope is a compressed sociological interpretation of the United States after the World War: population, regional economy, constitution, parties, cultural development, and the motives of American intervention. Schumpeter’s main thesis is that America is neither wholly alien nor reducible to economic power; it is a European-derived society, enlarged and transformed by its institutions, geography, and moral self-understanding.
Wir dürfen nichts, was uns absolut neu erscheinen könnte, in dem gewaltigen Gebiete der Vereinigten Staaten suchen.
English translation: We must not seek anything that could appear absolutely new to us in the vast territory of the United States.
This anti-exotic premise organizes the lecture. Schumpeter reads the United States as a continuation of European struggles and hopes, though under exceptional conditions of space, wealth, and mobility. He acknowledges ethnic mixture but treats American culture as decisively “angelsächsisch,” held together by English assimilation rather than biological homogeneity.
Darin liegt das einigende Moment in dem ungeheuren Mosaik von nationalen, religiösen, sozialen und kulturellen Tendenzen, deren Vorhandensein der persönlichen Freiheit so überaus günstig ist.
English translation: Herein lies the unifying element within the immense mosaic of national, religious, social, and cultural tendencies, whose presence is so exceedingly favorable to personal freedom.
The next conceptual move is materialist without being reductionist: origins alone do not explain American politics; regional life-forms do. Commercial farmers, eastern industrialism, and southern or western large property generate distinct political types.
Die Lebensverhältnisse der einzelnen Landesteile erklären das, was die Herkunft der Leute wohl unerklärt lassen könnte.
English translation: The living conditions of the individual regions of the country explain what the origin of the people might well leave unexplained.
Schumpeter then reconstructs the constitution historically. The colonies began with few common affairs, but the Civil War victory of the industrial Northeast reshaped federal power. He emphasizes presidential authority as the central institutional fact of modern America.
Das Präsidentenamt stand im Vordergrunde des Kampfes und seine Machtfülle erreichte eine solche Höhe, daß man heute wirklich sagen kann, der mächtigste Monarch der Welt sei der Präsident der Vereinigten Staaten.
English translation: The office of the presidency stood at the forefront of the struggle, and the fullness of its power reached such a height that today one may truly say that the mightiest monarch in the world is the President of the United States.
American politics, in this account, long remained secondary because economic expansion absorbed talent and because neither foreign danger nor domestic administration demanded a European-style political class. Parties reflect social structure: Republicans as industrial-capitalist and conservative, Democrats as planter-farmer, anti-trust, and free-trade in tendency; socialism remains weak, partly because radicalism appears inside other political currents.
The lecture’s most Schumpeterian passage concerns transition. America is becoming more like Europe: administration expands, intellectuals and bureaucracy gain weight, and the industrial magnate loses unchallenged dominance.
Die Staatsmaschine fängt an, ein Großbetrieb zu werden, und es ist kaum zweifelhaft, daß man sich auch jenseits des Ozeans einem Zustande der Intellektualisierung und Bureaukratisierung des Lebens nähert.
English translation: The machinery of state is beginning to become a large-scale enterprise, and it is scarcely doubtful that on the other side of the ocean, too, one is approaching a condition of intellectualization and bureaucratization of life.
The final section asks why the United States entered the war. Schumpeter rejects the common Central European explanation by economic interest: American profits lay in supplying the Entente, and intervention disrupted much of that trade.
Es ist klar, daß es eine Art Kreuzzug war, und absurd, die Teilnahme Amerikas am Kriege durch wirtschaftliche Interessen etwa erklären zu wollen.
English translation: It is clear that it was a kind of crusade, and absurd to try to explain America's participation in the war by, say, economic interests.
Instead he insists that moral forces are real political causes, whatever one thinks of their factual judgment. Americans saw the war as unlawful aggression and therefore as a matter for all civilized peoples.
Jedenfalls stellt sich dem amerikanischen Volk der Weltkrieg unter dem Gesichtspunkt eines widerrechtlichen Ueberfalls dar, den abzuwehren die Sache aller Kulturvölker sei, genau so wie es jedermanns Sache ist, zu Hilfe zu eilen, wenn man beobachtet, daß jemand auf der Straße plötzlich überfallen wird.
English translation: In any case, the World War presents itself to the American people from the standpoint of an unlawful attack, the repelling of which is the concern of all civilized nations, just as it is everyone's concern to hasten to help when one observes that someone is suddenly assaulted on the street.
Wilson’s significance follows from this moral framing, not merely from victory or diplomatic skill.
Daß er unter diesem Gesichtspunkt an die Spitze seines Volkes trat, das war die Position des Präsidenten Wilson, nicht der schließliche Erfolg, auch nicht die größere oder geringere Geschicklichkeit, mit der dieser Erfolg erreicht worden ist, sondern einfach der Umstand, daß er sozusagen als Sprachrohr der Weltmoral auftrat.
English translation: That he stepped to the head of his people from this standpoint—that was President Wilson's position; not the ultimate success, nor the greater or lesser skill with which this success was achieved, but simply the fact that he appeared, so to speak, as the mouthpiece of world morality.
The work is relevant as an early example of Schumpeter’s broad social economics: institutions, classes, economic forms, bureaucracy, intellectuals, and moral ideas are treated as mutually effective forces. Its portrait is dated and hierarchical, but analytically it resists both American exceptionalism and crude economic reductionism.
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