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This video covers Chapter 4 of Capitalism, Socialism and Democracy by Joseph A. Schumpeter

pages summarized: 13

[49-50] "Since, on the one hand, capitalist society cannot exist and its economic system cannot function without profits and since, on the other hand, profits are constantly being eliminated by the very working of that system, incessant effort to keep them alive becomes the central aim of the capitalist class. Accumulation accompanied by a qualitative change in the composition of capital is, as we have seen, a remedy which though alleviating for the moment the situation of the individual capitalist makes matters worse in the end. So capital, yielding to the pressure of a falling rate of profits–it falls, we recall, both because constant capital increases relative to variable capital and because, if wages tend to rise and hours are being shortened, the rate of surplus-value falls–seeks for outlets in countries in which there is still labor that can be exploited at will and in which the process of mechanization has not yet gone too far. Thus we get an export of capital into undeveloped countries which is essentially an export of capital equipment or of consumers' goods to be used in order to buy labor or to acquire things with which to buy labor..."

[52] "But we had better be careful. An apparent verification by prima facie favorable cases which are not analyzed in detail may be very deceptive. Moreover, as every lawyer and every politician knows, energetic appeal to familiar facts will go a long way toward inducing a jury or a parliament to accept also the construction he desires to put upon them. Marxists have exploited this technique to the full. In this instance it is particularly successful, because the facts in question combine the virtues of being superficially known to everyone and of being thoroughly understood by very few. In fact, though we cannot enter into detailed discussion here, even hasty reflection suffices to suggest a suspicion that 'it is not so' "

[54] "The essential point is that its causation has not much to do with class warfare, and not more to do with class structure than is implied in the leadership of groups and indiviudals that belonged to, or by colonial enterprise rose into, the capitalist class. If however we shake off the blinkers and cease to look upon colonization or imperialism as a mere incident in class warfare, little remains that is specifically Marxist about the matter. What Adam Smith has to say on it does just as well- better in fact."

[57-58] - actually *[56-57] "As regards the tendency toward socialism, we must first realize that this is a distinct problem. The capitalist or any other order of things may evidently break down–or economic and social evolution may outgrow it–and yet the socialist phoenix may fail to rise from the ashes. There may be chaos and, unless we define as socialism any non-chaotic alternative to capitalism, there are other possibilities. The particular type of social organization that the average orthodox Marxist–before the advent of bolshevism at any rate–seemed to anticipate is certainly only one of many possible cases."