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The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle

Book by Joseph A. Schumpeter · 2 quotes · Economy, Liberalism, Politics

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The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle Quotes

“Access to the national dividend is usually to be had only on condition of some productive service previously rendered or of some product previously sold. This condition is, in this case, not yet fulfilled. It will be fulfilled only after the successful completion of the new combinations. Hence this credit will in the meantime affect the price level.”

“The banker, therefore, is not so much primarily a middleman in the commodity "purchasing power" as a producer of this commodity. However, since all reserve funds and savings today usually flow to him, and the total demand for free purchasing power, whether existing or to be created, concentrates on him, he has either replaced private capitalists or become their agent; he has himself become the capitalist par excellence.”