Joseph Schumpeter, an Austrian economist, had a unique view of free market economics. He had an insight that some of his best fellow economists were blind to. He understood that economics is ultimately not about supply and demand or about financial rewards but about culture. Culture always trumps rational analysis. Otherwise, why would the poor be willing to serve the rich by dying in war?

Schumpeter was right in thinking that capitalism would eventually yield to socialism. Not, as Karl Marx had predicted, because of economic needs but because the culture of the powerful and educated classes would demand it. What he was not aware of was the force of the culture of countries that owned slaves or had colonies that did. They will have to deal with that problem for another two hundred years.