This volume examines central questions about the nature of economic theory, its historical development and its explanatory power. What determines economic distribution - can pure economic theory itself explain the fundamentals of distribution or is a broader economics incorporating theories of power in society necessary? The book presents the debate through classic statements of each position from two leading economists of the century, Joseph A. Schumpeter and Yasuma Takata. A substantive introduction from Michio Morishima assesses and places in context the work of both Schumpeter and Takata.

JOSEPH A. SCHUMPETER (1883 - 1950) was sometime Professor of Economics at the Universities of Graz, Bonn and Harvard. His major works which made him one of the all-time great economic theorists and historians of economic thought included Business Cycles; Capitalism, Socialism and Democracy and The History of Economic Analysis. YASUMA TAKATA (1883-1971) was sometime Professor of Economics at Kyoto and Osaka Universities. In 1965 he received the Bunka Koro-sho (Prize for Contribution to Culture) and in 1971 the Kun-itto (the first class honour) both from the Japanese Government. His major works, all published in Japanese, included Principles of Political Economy (5 volumes), On the Rate of Interest and Essays in Power Theory of Economics. The editor, MICHIO MORISHIMA is Professor Emeritus of Economics at the London School of Economics and Political Science.