Hi J.; I am not sure about your interpretation but if I understand correctly, the reply would be: that «fail» refers to the spirit of entrepreneur-iality, i.e.

Hi J.; I am not sure about your interpretation but if I understand correctly, the reply would be: that «fail» refers to the spirit of entrepreneur-iality, i.e. the dynamism centered on innovation. Schumpeter was called (by Joan Robinson) «Marx with the adjectives changed»: his idea was that innovation be "the driving force of capitalism", but since efficiency creates bloat, the lean becomes heavy, the dynamism becomes bureaucracy, the "entrepreneur" becomes a """manager""" (an insulting label in Sch.), capitalism proceeds towards atrophy and finally transforms into socialism. In Schumpeter, "entrepreneur" means "the dynamic innovator"; the monopolistic phase is that of the heavy bureaucracies - that would be the failure. The Schumpeterian school (Sch. died in 1950 - crucial time) deals consequently with "why socialism did not happen". If it was you that hit my parent post: I only reported that quote to help the poster asking for a bibliography - the paragraph contains reference to the two main books, with short descriptions left to the writing researcher (my own competence on Schumpeter is minimal). I am not personally defending their theories.