Douglas W. Rae, teaching Yale's Capitalism: Success, Crisis and Reform, compares Marx's theory of monopoly capitalism with Schumpeter's idea of creative destruction, noting both agree capitalism can never simply stand still. Rae uses the history of energy production, from water-powered mills onward, to illustrate Schumpeterian revolutions in technology, then turns to Marx's labor theory of value. He critiques Marxist historicism and determinism, pointing to what Marx missed: supply and demand for labor, labor quality, and capital's role in growth. The lecture works through falling rates of profit, the immiseration thesis, and Marx's prediction that revolution would strike the most advanced capitalist economies first, a prediction history did not bear out. It closes with Marx's theory of the universal class and his expectation that the state would wither away once exploitation ended. Recorded in Fall 2009 as part of Yale's open course on capitalism.