Capitalism, Socialism and Democracy is one of the great classics intwentieth century social science. What makes Schumpeter’s book so brilliantare three things in particular: its novel view of democracy; its hereticanalysis of the workings of the capitalist economy; and its provocativeargument that capitalism is bound to disappear—not because of its failure,but because of its success. Schumpeter’s style, it should be emphasized,also makes the book a pleasure to read: “Even if, in places, you may dislikewhat Schumpeter says”, as one reviewer put it, “you will like the way hesays it”.1 In this introduction I shall say, first, a few words about the writingof Capitalism, Socialism and Democracy and its place in Schumpeter’soutput as a whole (Part I). I shall provide then a reader’s guide toSchumpeter’s book, which may be of assistance to those who areapproaching it for the first time. This will also enable the hurried readerto go straight to the most important parts of Capitalism, Socialism andDemocracy (Part II). The third and final part of the introduction deals withthe contemporary relevance of Schumpeter’s work. Schumpeter, forexample, argued that socialism is about to replace capitalism—an opinionthat seems totally wrong today, especially after the disintegration of statesocialism in the Soviet Union and East-Central Europe (Part III).