Schumpeter and reconciling divisive responses to the Bishops' Letter

Idealogically motivated responses to the Bishops' Letter have heightened the divisiveness of subsequent dialogue at the expense of its rigor. Schumpeter's metaphor of creative destruction provides a vehicle for reconciliation between advocates of politics and markets. His most distinguishing characteristic of capitalism extols its productive and dynamic properties. It underscores its relentless and unmanageable side that transforms institutional structures as well. The capitalist engine is driven by a perennial gale that creates and destroys at the same time; thus there is a necessary role for both entrepreneurs and planners in a mixed economy. The bishops' call for collaboration is also subject to the Schumpeterian metaphor. Major process changes without new institutional forms are inconsistent with the historical experience of U.S. pluralist society.David R. Palmer is Assistant Professor of Management at Santa Clara University where he teaches courses in Business Policy and Business and Public Policy. He holds an MBA from the Harvard Graduate School of Business Administration and a Ph.D. in Business and Public Policy from the University of California, Berkeley.     

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