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Wohlgemuth, Michael --- "Schumpeterian political economy and Downsian public choice: alternative economic theories of democracy" [2005] ELECD 103; in Marciano, Alain; Josselin, Jean-Michel (eds), "Law and the State" (Edward Elgar Publishing, 2005)

Book Title: Law and the State

Editor(s): Marciano, Alain; Josselin, Jean-Michel

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781843768005

Section: Chapter 2

Section Title: Schumpeterian political economy and Downsian public choice: alternative economic theories of democracy

Author(s): Wohlgemuth, Michael

Number of pages: 37

Extract:

2. Schumpeterian political economy
and Downsian public choice:
alternative economic theories
of democracy
Michael Wohlgemuth*

1 INTRODUCTION
No one ever knew quite what to make of this neat saturnine man with a taste for
dramatic prose and theatrical gestures. He was undoubtedly brilliant ­ but he
was perplexing. (Robert L. Heilbronner 1953, 302 about Schumpeter)

Joseph Schumpeter is often regarded a pioneer, if not the founder of `public
choice' or the economics of politics.1 Looking back at the development of
mainstream public choice and looking closely at Schumpeter's own writ-
ings on democracy (and on the limits of static equilibrium analysis), this
seems rather odd. There may be a hidden irony in the history of ideas which
only a few observers2 have uncovered in its manifold aspects.
Usually Schumpeter is only mentioned as a precursor, but hardly ever
quoted in his own words. Already Downs (1957) in probably the most
influential book in its field is a telling case when he states: `Schumpeter's
profound analysis of democracy forms the inspiration and foundation of
our whole thesis, and our debt and gratitude to him are great indeed'
(ibid., 29, fn. 11). In the whole thesis, however, Schumpeter is mentioned
only twice with the same quote describing his general approach which
regards social functions of politics as incidental byproducts of the com-
petitive struggle for power and office. Schumpeter's core assertions on
irrationality in politics and the vital role of political leadership are neither
mentioned nor accepted. Nevertheless, it ...