Dear Readers,

Letters from the editors...Page 2 Write for us ....Page 3 Chinas Economy....Page 4 UK Budget 2012........Page 5 Heathrows Expansion....Page 6 Londons Mayoral Race........Page 7 Footballers Pay....Page 8 Public Relations..Page 10 Evolution of The Schumpeter..Page 11

As I have been working with The Schumpeter since its inception under the editorship of Timothy Robinson, either as a writer or as part of the editorial team, I feel a very special connection to the magazine. Bearing witness to the changes of The Schumpeter over its lifetime has allowed me to see it grow and mature. Every issue has been an improvement on the previous, with the most drastic changes between issues 6 and 7. To highlight this, we have added a special feature on page 11 of this issue so that you may see how the magazine has changed with the times. The tenth issue of The Schumpeter is a proud moment and a milestone. We would not have made it this far without the conscientious efforts of the editors past and present, all our contributors, City University Students Union and the Department of Economics. On behalf of The Schumpeter team, I would like to say a heartfelt thank you to all of the aforementioned for your contributions, encouragement and support. In closing, I would like to urge any students who contribute to the magazine to keep the success going for the coming years.

Tanvi Narayan

Kirti Sharma

David Osborne

David Osborne

Chinas Economy
A false illusion built on quickBy Adrian Booth BSc Investment & Financial Risk Management Student, currently on Industrial Placement

The phrase, When America sneezes, the rest of the world catches a cold, dates back to 1929 when the US began its descent into its decade long depression. Ever since, the US economy has been regarded as the engine of the world economy. Now the paradigm is shifting, and the new undisputed champion of world economic growth has been rewarded to the Chinese. I first heard about Chinas economic success story on a flight to the US when I was 10 years old. Now I have no idea how I ended up discussing economics and politics at the age of ten with a grown man (he must have done most of the talking), but I remember him clearly saying that China will be the next big superpower and the wealthiest country on earth in 10-20 years. Now, this was in the year 2000 before it was trendy to discuss Chinas economy. This was before the dotcom crash in March when everybody thought the US was invincible.

demand and the invisible hand no longer apply. The new visible hand of the state seems to be the new paradigm in economics, and frightfully one that mainstream economists seem to believe. Its ok, if Chinas economy slows down, the government will stimulate the economy and miraculously prevent a recession...China is invincible with its $3 trillion in reserves.

These arguments from pundits are riddled with ludicrous logic. Firstly, one of the typical features of a classic bubble, as expressed by financial historian Edward Chancellor, is an undue blind faith in the competence of the authorities. The fact that investors think China will be ok because the country is ruled by a group of wise men in Beijing is what So where did this money go? Look Now here we are twelve years later, should have us worried more than no further than the property and construction markets for an indicaand China is without a doubt be- anything. tion. Figures from the Wall Street coming a dominant global power Reading the recent commentary very quickly. But let us not forget surrounding Chinas economy, it is Journal show that, nationwide, there that most nations that undergo a clear that the country is a shambles was 3.6 billion square metres of property under construction at the period of intense transformation, when it comes to rule of law and both economically and socially, ex- regulations. Take this point from Vic- end of October last year. Compare this to sales of only 709 million square perience bumps along the way. tor Shih from the Wall Street Journal. metres in the first 10 months of 2011 The fact is that China is in the midst He cites a banker in the Guangand it is evident that China has a of a typical bubble that has charac- dong province of China bribing the severe overcapacity problem. Overterised emerging nations for hun- local police to arrest an auditor that capacity of this scale usually results dreds of years. Eventually their was attempting to evaluate the in a liquidation of asset values and economy will come under severe banks financials. Wang Yi, the Vice an economic crash2. There have pressure due to the persistent imbal- President of the Chinese Developbeen studies that show from 2003ances present in their economic ment Bank, was convicted of receiv2010 Beijings real estate prices rose model. What is disturbing in this in- ing bribes to grant loans against regbetween 350-900%. Recent efforts stance is the hubristic sense of invin- ulations1. There are many instances by the government to rein in this cibility currently perceived in China of this in China and many are still bubble in the nations housing marand in economic circles around the surfacing today. Warren Buffet is ket have proven successful to a deworld. There seems to be a new famous for saying, its only when gree, but throughout history it is exera, where the old rules of supply & the tide goes out do you realise

whos been swimming naked. In China, were about to discover the level of nudity beneath the surface. It can be observed from the chart above (provided by Soct Gnrale), that Chinas credit markets experienced an unprecedented level of stimulus back in 2008 as the authorities were backed into a corner on a possible slowdown. The gigantic increase in credit is a very worrying sign. Nearly every bubble in history has been associated with a rapid growth in the supply of credit to a group of borrowers. In this case, Chinas local governments and property developers have been goosed up with a flood of new bank loans that face the risk of going bad.

tremely rare to undergo a period of excessive speculation without suffering the consequences down the road.

growth. Looking back throughout history, those countries that have had such high investment levels ultimately went on to experience extreme levels of volatility and, subsequently, crash. I believe the consensus is wrong, and that mainstream economists are deluding themselves into thinking this transformation from investment to consumption will be an easy ride. Shorting China as a contrarian play on hubris, arrogance and delusion will prove to be one of the great investment ideas of this decade.

growth and a reduction in the fiscal deficit. Osborne finished his speech with a clever little statement: this country borrowed its way into to trouble, now were gonna earn our way out, subtly twisting the knife of blame in Labours side while declaring themselves the white knights with a red briefcase of bitter pills to heal our beleaguered economy.

A report from Fitch in 2010 indicates that the growth in the shadow banking industry in China is more than offsetting the slowdown in credit growth brought about by the governments efforts4. The report concedes that the data on bank lending points to a slowdown, but highlights that actual credit flows in China remain as high as in 2009: lending has not moderated, it has merely found other channels. This report was published just over a year ago, but the facts remain the same; the government is finding it hard to contain the credit virus theyve unleashed into the system. The only way to cure this problem is through a liquidation of bad debt and a reorganisation of the economic struc- So, what is Osborne trying to ture. achieve with these measures? He simply wants what all countries want in the face of this bleak economy:

Mr Cameron has insisted in the past that, those who argue that dealing with our deficit and promoting growth are somehow alternatives are wrong. However, one unfortunately cannot deny that the aims of growth and a deficit reduction are The UK Budget 2012 diametrically opposed. You need to Learning from the past, but not quick spend money to make money, also enough known as buying your way out of a By Kirti Sharma recession. If you are spending monThird Year Bsc Economics and Accountancy Student ey on government projects and inOn March 21st, Chancellor George creased welfare, you cannot be Osborne delivered his budget for this reducing your deficit at the same year. In a nutshell: we see a freeze pace. on pensioners allowances, increas- The measures that the government es in stamp duty on homes over 2 has doled out for the last three million to 7 per cent, a reduction in budgets have gone some way to the top rate of tax to 45p, a cut in reducing the deficit, but at the cost corporation tax to 24 per cent, a rise of growth. These austerity measures in personal allowance and an over- have been harshly criticised as misall upgrade in growth forecasts for guided. Economists have comment2012. ed that this severe medicine could cut short Britains economic recovery and throw the nation back into recession. And the proof is in the pudding: the National Institute of Economic and Social Research, a

If the consensus is correct, and Chinas economy continues to experience high growth in the 8-9% region, then this will be one of the most unprecedented success stories in economic history. Never before has an economy experienced such a high investment/GDP ratio (or Gross Fixed Capital Formation/GDP as shown above) and seen so many sequential years of strong investment

British think-tank revealed in January this year that Britain is doing worse this time than it did during the Great Depression. However, given this budget, it would appear that the government has, to an extent, heeded the warnings that expansionary austerity is a deadly cocktail sure to give the country another economic hangover. For example, one of the biggest reliefs is the rise of 1,100 in tax-free personal allowance to 9,205 from April 2013 making 24 million people 220 a year better off. Additional allowances come in form of the aforementioned tax cuts, one the reasons why Labour has dubbed this plan as the the billionaires budget. While tax-cuts are not directly classed as government expenditure, they will have a similar positive impact on the economic revival. If the cash being saved in tax is being spent in the UKs economy, each pound will literally have more bang for its buck, propping up the consumer market, rather than going directly into settling the governments debt, a large chunk of which is owned by investors overseas. In addition, Osborne aimed for this budget to reward hard work and policies like these tax-cuts serve to encourage the high-earners and businesses to keep their assets within the UK. Scrapping the 50p tax was the only sensible option. It yielded just one-third of the 3bn it was forecast to raise and it was the perhaps the most damaging sound-bite of the governments tax policy last year, spooking high-earners and growth enterprises. However, while they make some of the right moves for a growth strategy, they are still rolling back the welfare state, one of the most criticised policies of the UKs austerity package. For example, the age-related allowances for pensioners will be frozen from April 2013. Although Osborne claims no pensioner will lose out in cash terms, in reality inflation will see this group pay 3.3 billion

more in tax, making approximately 4 million pensioners 83 a year worse off. It is this implicit tax hike on the elderly which has been so controversial, especially in light of the cuts to corporation tax. These policies show that governments solution to recovery is not one of increased borrowing but rather one of robbing Peter to pay Paul. This all comes back to the compromise that Cameron is trying to strike between growth and deficit cutting, but it really is a fallacy. If we want a recovery that will not deflate within months we need more short-term borrowing to pump more wealth into the economy though government programmes and welfare. However, this budget has actually revised down the government borrowing to 126 billion this year- 1 billion less than the autumn forecast. The government will soon have to learn that there is only so much they can rob from the old and that piece -meal policies will not a recovery make. That will be their own bitter pill that they will have to swallow.

Heathrow Airport as a result of protests from environmental groups and local residents. Now, as Heathrow is running at 99% capacity and many analysts envision an imminent airport capacity crunch for London and the South East, the debate has arisen from the ashes. The expansion of Heathrow Airport would have consisted of a new 2,200 metre runway, a sixth terminal and a high-speed railway hub. Local residents and councils opposed the plan on the grounds that it would destroy local communities. The expansion would require the demolition of the village of Sipson and over 700 homes. In addition to this, the local residents who would not have to forego their homes would then have to endure more noise pollution and poorer air quality due to the increased air traffic.

With aircraft currently landing and departing every 45 seconds at Heathrow, landing slots are costly, relative to comparable airports in Europe. In addition to this, it leaves very little slack in the event of extreme weather. This lack of spare capacity has put significant pressure being a global hub. Many airHeathrows Expansion on it have opted to use hubs in Amlines Come fly with me sterdam, Frankfurt, Paris and Madrid By David Osborne Third Year BSc Economics Student due to lower costs and more landUpon being elected in 2010, the ing slots. We have already seen the number of destinations served by Conservative-led coalition government scrapped the expansion of Heathrow decline from 227 in 1990

to just 194 today. Frankfurt Airport serves 307 destinations in 94 countries, Amsterdam Schiphol serves 281 and Paris Charles de Gaulle serves 292. This has a profound impact on the economy. The consultancy firm Frontier Economics has predicted that Britain could miss out on 1.2 1.6 billion of trade a year if capacity continues to be constrained. Colin Matthews, the CEO of BAA, Heathrows parent company said, if Britain is not to lose out to international competitors, we need an aviation policy that recognises the role of a hub airport in supporting growth and we need it quickly. Better connections will be needed as emerging economies continue to grow and increase trade with the West. It is expected that by 2021, if Heathrow remains constrained, it will only account for 21% of the seats booked to the eight fastest growing economies from the five European hubs compared to 35% if it were allowed to expand. Boris Johnson, Londons Conservative Mayor has proposed a new airport in the Thames Estuary to replace Heathrow as a hub. This is not a new proposal, the first plans to construct an airport in the Thames Estuary date back to 1943, just a year before a small airfield on the current site of Heathrow was expanded to cope with larger aeroplanes destined to the Far East. The airport in the Thames Estuary would be a purpose-built international airport of four runways and due to its distance from most settlements would be operational for a full 24 hours a day. The idea of a brand new airport may seem rosy, but the Thames estuary is a habitat for many endangered species of birds. Building an airport is likely to upset their habitats and endanger them further. In addition to this, the airport will have to be built on a man-made island, which means that it will be at least a generation before the airport comes

to fruition. The airport itself would cost 20 billion, but due to its location an additional 30 billion would have to be spent in order to provide the infrastructure necessary to support such an airport.

that has run in every election since the creation of the role and won two out of three times. What started as a sure thing for Boris Johnson has slipped to become one of the tightest races according to a recent YouGov poll that now suggests Ken At Heathrow, this infrastructure alLivingstone will regain control with a ready exists it is well served by Na1% margin. tional Rail and the London Underground, in addition to buses and And now with only a handful of coaches. Moreover much of weeks left until the campaigning Heathrow is relatively new. Terminal ends and the polls open both par5 is just four years old, a spiffy new ties have unveiled their miniTerminal 2 will open in the coming manifestos. Kens flagship policy is a months and there are plans to mod- reduction in transport fares of rather ernise Terminals 1 and 3 in the com- hefty 7%, this speaks volumes to the ing years. Expanding at Heathrow is millions of commuters who travel the quicker, cheaper option, but the each day and have incurred rise government are determined to ex- after rise over the years, although plore all the alternatives. The fact is many were performed while he was simple; Britain needs a modern fit-for originally Mayor. The policy resounds -purpose hub airport. Whether by nicely in a time austerity and has expanding Heathrow or building a certainly been an important part of new airport, the government must Kens comeback in the opinion act boldly before Britain is left be- polls. Ken promises increases in pohind. lice levels, which is always important to Londoners, particularly after the riots last summer. There is also another policy that breaks new ground in Personality vs. Politics London, the possibility of rent conLondons Mayoral Race trolled apartments. The London rentBy Tom Doherty al market could certainly do with BSc Economics Alumni & Former Editor lower prices, but the potential for On the 3rd May this year, Londoners rent ceilings to affect the quality go to the polls to choose their Mayor and quantity of rental properties is for the coming years. You could not immediately obvious to the widhowever forgive Londoners for not er public. being terribly excited about this race; their ultimate choice is between a quirky incumbent Conservative candidate theyve come to know and a Labour candidate Ken goes further to pursue wider agendas, for example restoring Education Maintenance Allowance for students in London. The reduction in the number of students attending

College after EMA was scrapped certainly justifies this cost. A return to 85,000 students claiming EMA (the number claiming in London when it was scrapped) which costs up to 90million per year, a high price to pay to ensure Londons poorest students stay in education. Boris Johnson on the other hand has a plan that does not resonate as easily with the public. He promises to cut waste of approximately 3.5 billion from City Hall and freeze the Mayoral share of council tax. The initial point sounds like a lot of waste and considering that 3.5 billion makes up 24% of the City Hall budget it is suspicious that such a large amount of the budget goes to waste whilst the Government has scrambled to cut waste for almost 2 years. Boris, in a move similar to Ken, promises 1,000 more police on the beat, but goes further to promise reductions of 30% in Tube delays by 2015, 200,000 new jobs, 11,000 new homes due to the Olympics and the building of Crossrail. However, a reduction in Tube delays was expected to occur naturally as a result of years of investment, the homes built under the Olympics were commissioned by a Government long gone and Crossrail is a infrastructure project commissioned and being managed by the current UK Government, not the London Authorities. Boris promises are little more than a list of pre-existing, long-standing, commitments. Big figures like 3.5 billion may stand out to Londoners, but their honesty must certainly be questioned. However, the public like Boris Johnson, they see his work everyday through the Barclays Cycle Hire scheme and now the new Routemaster bus. It may seem a little fickle, but the power of the personality must not be underestimated. Its no secret that often personality can trump the politics in the view of the people. Alternatively Red Ken as he came to be known is remembered for being controversial and at

the Left wing of the Labour party. His manifesto gives critics much to be desired, it goes to the heart of what Londoners want, but the number of people who actually read it will be minimal. The winner will depend on the exposure of candidates to their voters, whether Lib Dem voters turn to minority partys or Labour as a result of unpopularity in Government (recent by-elections suggest a movement to Labour) and finally; the turnout of Londoners. This is all however conditional on one scrupulous point in politics, that the promises made are ultimately kept. Tour who reportedly earns upwards of 200,000 per week). One reason why Premier League players are paid so highly could be that of expectation. It has often been observed that businesses take out loans to invest capital, against the expectation of potential profits from said investment. It is not too farfetched to assume the same for Premier League clubs, as they are also businesses.

Footballers Pay
Supply and demand
By Gyles Couram Third Year BSc Economics Student

In 2011, it was recorded by the Office of National Statistics that The median weekly household income after housing costs in London was 371. That works out to almost 20,000 disposable income per annum. This pales in comparison to the average annual Premier League salary of 1.46 million, which is subject to increase after performance related bonuses and the like are added. Here, it is attempted to explain the reasons why Premiership footballers are paid more than the average London household.

North London based club Arsenal FC are an example of this. With high uncertainty surrounding the teams potential qualification into the 20092010 UEFA Champions League tournament, Arsenal signed Russian playmaker, Andrei Arshavin, in the January transfer window to compensate the loss of their then injured Firstly, there is a difference between key player and captain, Cesc Fatransfer fees and wages. Transfer bregas. fees are the amount paid to the team for a player to move clubs Arshavin signed to Arsenal for and act as compensation for the around 15 million Participation loss of a prized asset. The current would bring in about 20-40 milhighest Premier League transfer fee lion to the club. Not only is it clear is 50 million for Spanish forward, that the projected benefits outFernando Torres, paid by Chelsea weigh the costs in this situation but it FC (buyer) to Liverpool FC (seller). is also an example of a players pseudo-multiplier effect for a club. The wages are what the player is Another reason is celebrity status paid throughout the duration of their and unique talent. As successful contract. The current highest Premsportsmen, the players are often ier League wage appears to belong subject to advertising campaigns to Manchester City midfielder, Yayaand sponsorship deals, ranging from

Renault to Nike. Though footballers are often also the subject of comparison to their peers (The next Zidane, the next Maradonaetc), it should be noted that no two footballers are exactly alike when it pertains to their ability, desire and other such qualities, no matter which club or country they originate from. Therefore, price and cross elasticities of demand for an individual player would be low (below zero and near zero respectively). In effect, there is only one David Beckham Manchester United legend, Real Madrid, LA Galaxy, AC Milan star and top fashion icon; but numerous nurses for the NHS who all undertook the same schooling to receive the same qualification. If it were possible to derive a demand and supply curve for David Beckham and NHS nurses, it is highly likely that Beckhams demand curve would be inelastic, with a vertical supply curve, whereas nurses would have much flatter demand and supply curves because of their quantity. Supply would be fixed, as there is only one of him, but could vary depending on wages and his skill level and demand would also be very inelastic, if not perfectly so. NHS nurses on the other hand, would have very elastic demand and supply curves as they have a higher degree of substitutability among them.

Another reason for the players high wages, though not economical, is the expectation for peal physical condition. Premier League players are often portrayed as money grabbing playboys who work for only a few hours a day. This is an unfair generalisation, as footballers train rigorously for those few hours, with some of the players themselves being shocked with the amount of effort required to compete at the top level of English football. Additionally, they are under tremendous pressure, having to churn out stellar performances in matches each week (at times more than once a week due to cup games) in front of tens of thousands of people live and millions via television.

For the average person living in London or not, it has been documented that the average person should have 30 minutes exercise, five days a week. This is not obligatory. It should be highlighted that these athletes play sports, not as a recreational activity, but professionally as a job, which eliminates the choice factor. When compared against a footballers daily training hours plus 90 minutes on up to 3 match days per week, it is clear that footballers win this argument. Domestically, footballers generate revenue for clubs in ticket sales, merchandise and the like, for which the clubs spend, adding to the money circulation in the economy, benefitting it. To illustrate, in 2009/2010, the top 92 clubs in the country, including the Premier League paid just shy of 1billion in tax. At a time where there is economic uncertainty such contribution cannot be underestimated. In the 2009-2010 season, the Premier League increased its revenue to almost 2.5 billion in with the main sources of income being match tickets, broadcasting and sponsorships. As seen in the graph depicting revenue growth, (above) the purple bar illustrates that the revenue generated by the Premier League has been

growing since its foundation in 1992. It goes without saying then that footballers injective economic power is substantial and subject to continuous increase in the years to come, providing it remains the spectacle that it is today. It is only possible to do so by attracting the best players from around the world and signing the best players from home soil and part of the incentive is through higher wages, which Deloitte say are on the rise, hitting 68% of revenue in 2009/2010, to counter act the countrys high. Fortunately, Premier League clubs continue to be attractive to global investors so paying large wages should not be a problem, although with UEFA bringing in Financial Fair Play rules, benefactors like Chelsea owner, Roman Abramovich will have to rein in spending to meet the clubs income or face bans from entering the premier European tournaments, UEFA Champions League and the Europa League. Though it can be argued that their high wages are unfair when compared against more ethically sound professions like teaching and medicine, it must be stressed that footballers are assets to multi million (sometimes billion) pound companies, who are not paid with tax payers money. The monumental pay slips given to them are from their teams, who see fit to give their stars such amounts; and when it comes to their contribution with some estimates valuing football related business at over 250 billion in a single year alone, the benefits of the players and their clubs cannot be ignored and their pay is reflective of their overall contribution to the economy.

Public Relations
The difference between machetes, guns and Underground posters
By Tess Van Geelen Journalism and Economics Student at The University of Queensland, currently on exchange at City University

Before Public Relations Managers there were Journalists and Town Criers, and before these was the Church. And before the Church there was very little going on. One might argue that these institutions have served some similar roles in history although some may be deeply offended by the suggestion. But respect them or despise them, on one level at least, they have prewith and relate to one another. It vented bloodshed. provides a common understanding In liberal-democratic societies like of how to interact. More to the the USA and UK it is understood that point, meanings are increasingly a political party must obtain the constructed they are made by consent of the public in order to rule professional meaning-makers who this is known as legitimacy. Howev- are trained, licensed and emer all dominant groups, in devel- ployed to create the meanings that oped and developing nations alike, society absorbs and circulates, and must use force to some extent, they do so with the intention of makwhether it be physical oppression ing a profit from them. This is the and violence( as in Egypt a year work of Journalists. ago or Syria now) or simply the When the Industrial Revolution rolled threat of force (in the form of police, around, meaning-making (and the prisons and courts as in the UK). No meaning-makers) became institugroup of people could ever agree tionalised: the entire process becompletely, so in order to maintain came organised as in a factory, with the community at all, dominant a division of labour and a hierarchy. groups must force the disagreeing By the nature of the system, one in element to co-operate. The amount which each person must please the of force that is necessary is dependperson above them in order to keep ent on how naturally unified and their job, all of the meanings being conformist a society is i.e. how powproduced were subjected to the erful the disagreeing element is; conditions of the power-relationships and how much legitimacy the domiwithin these corporations, and were nant group has acquired. ultimately controlled by the owner. Legitimacy comes from agreement When faster communications techwith the meanings a particular so- nology and subsequent globalisaciety shares. Meaning comes from tion allowed a system of networks to personal experience and interaction replace the old managerial model with everything around us, including of these institutions, the power relapeople. Coding systems allow us to tionships changed again, causing share meanings with each other (i.e. both the method of production and, languages) and in this way we can by extension, the meanings themcreate an enormous pool of selves, to change with it. meanings. This is a way of defining In the 40s, Theodor Adorno and Max society: these common meanings Horkheimer of the Frankfurt School that we all share allow us to identify

identified institutions such as compulsory education and the mass media as dangerous tools of societal homogenisation (or mass conformity) they called this the Culture Industry. They argued that since the industrialisation of media-making, the owners of large media companies have held the power to control what a society thinks about, and what it thinks to be important, by distributing the same discourses and meanings throughout mass audiences. This process, they warned, would gradually destroy creativity and progress by silencing and preventing conflict of ideas. The potential for hegemonic political domination through skilful manipulation of the media is undoubtedly enormous, but the kinds of comprehensively oppressive and conformist societies that the Frankfurt School feared so much are subject firstly to the limited skill of the manipulators in question, and more importantly to the infinitely fickle and shallow nature of public opinion. Moreover, although the nature of this system does restrict a healthy conflict of ideas within the mainstream channels, putting pressure on avenues and outlets of creativity does not eliminate it. By their nature, creative people will only find new ways of expressing new ideas.

controlled, elaborate design con- Issue 3 structed in the White House such a statement would be lacking in appreciation of the incredible complexity of the system at work. The reality is that the Culture Industry is not controlled by any accountable group. Rather, it is something which reflects society at a given time, which may be manipulated by a dominant group to exploit the nondominant groups. While this exploitation is, believed to be, what the Frankfurt School most feared, it may not be the new and inescapable threat that they made it out to be. Exploitation is an inextricable element of humanity. The historical progression of mankind has been Issue 5 based on the relational changes concerning exploitation of one group by another. Hence, a criticism on an exploitative system is no more useful than any other generic criticism of awful humanity. The development of an exploitative system that no longer relies on violence is an achievement to be celebrated.

The Schumpeter
Onwards & Upwards

As this is the 10th Edition, we want to have a look at how The Schumpeter has evolved over the years. Issue 7

A dominant group will, by their naIssue 1 ture, do anything in their power to remain so. In lesser-developed countries we often see these attempts manifest in violence, but the developed world have found a cleaner, more efficient way through the media and culture industry. The homogenisation and conformity that result from a successful culture industry mean that mass communities are more inclined towards unity and agreement, and this is manipulated by dominant groups to legitimise their authority and actions. This is the work of Public Relations. That is not to say that popular culture in America, for example, is a