What is Capitalism? A Serpent Eating Its Own Tail or a Phoenix Rising from the Ashes?: A Philosophical, Methodological and Ideological Comparison of Marx and Schumpeter's Approach to Long-Term Economic Cycles

Abstract

Introduction: This article aims to explain the philosophical, ideological and methodological differences and similarities in the analyses of modern capitalism by Karl Marx and Joseph Alois Schumpeter. This study is important in terms of showing that two economists and thinkers who are known as opponents and substitutes for each other actually complement each other at many points.

Method: The research compares the differences and complementary points of the two thinkers in terms of philosophical foundation, ideological perspective and method used, based on the expressions in the works of Karl Marx and Joseph Alois Schumpeter. The article discusses the methodological foundations and historical basis of the crisis perceptions of these two thinkers; it also questions the validity of these approaches in the context of today's digital economy and technological transformations. In this respect, the method of the article is descriptive comparison.

Results or Findings: Marx views capitalism as crisis-prone and historically limited; Schumpeter sees it as self-renewing through creative destruction. Both adopt dynamic disequilibrium frameworks from differing ideological standpoints.

Discussion or Conclusion: There are similarities as well as differences in the analysis of both thinkers. In terms of similarities, both thinkers say that the crises of capitalism stem from its own nature, while Marx argues that the process will lead to the final crisis of capitalism, Schumpeter puts forward the view that crises will lead to capitalism renewing itself. The conclusion reached by the article is as follows: As a result, capitalism can have a structure that, on the one hand, produces its own crises, and on the other hand, feeds on these crises.