ABSTRACT
This chatper explores the contributions of Schumpeter that complement and contrast with those of Weber in a number of ways. Schumpeter wants to emphasize the routine and repetitive character of his static economy, which he describes with the phrase the "circular flow of economic life". Schumpeter points out that economic activity in the "circular flow" may have numerous possible motives, even spiritual ones, but its ultimate meaning is always the satisfaction of wants. In a nutshell, in The Theory of Economic Development, Schumpeter sets out to build a framework for grasping the entire capitalist system and its dynamics on the basis of the economic theories advanced by Walras and the marginal utility School. Schumpeter's unique and original contribution to economic theory really begins with his concept of "development". Schumpeter's main focus is the process of change that arises from within the economy.
