Access Quote by Joseph A. Schumpeter
“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.”
About This Quote
Source Book: Capitalism, Socialism and Democracy by Joseph A. Schumpeter, 1942
Economic credit is granted only after productive contributions; until then it influences prices, highlighting the lag between input and reward.
In simple terms: Credit depends on prior productivity.
Key Takeaway
Ensure productive work before seeking credit.
Themes
economics
credit
productivity
lag
market dynamics
Mood
cautious
analytical
Type
economic
theoretical
When to use this quote
- business planning
- financial forecasting
- policy making
- entrepreneurship
Key Concepts
capitalism
Schumpeterian theory
investment
Questions to Reflect On
- What risks arise when credit is extended before productivity?
- How can lag be minimized?
A Different Perspective
Credit may be speculative and risky.
![“All we can thus far say about the duration of the units of [the business cycle] and each of [its] two phases is that it will depend on the nature of the particular innovations that carry a cycle,... and the financial conditions and habits prevailing in the business community in each case.” quote by Joseph A. Schumpeter](https://sms4smile.com/quotes/img-quotes/d28/joseph-a-schumpeter-9723_business_all-we-can-thus-far-say-about-the-durati_219232.jpg)
![“Surely, nothing can be more plain or even more trite common sense than the proposition that innovation [...] is at the center of practically all the phenomena, difficulties, and problems of economic life in capitalist society.” quote by Joseph A. Schumpeter](https://sms4smile.com/quotes/img-quotes/41e/joseph-a-schumpeter-9723_capitalist_surely-nothing-can-be-more-plain-or-even_384413.jpg)
