Joseph A. Schumpeter declared that Capitalism, Socialism and Democracy (1976) become the important economic system as well as value system in society. Capitalism has exceeded itself as the economic system and the moral economy comprise of spirit, social virtues characterized by reciprocity and strategy formation at the same time. Schumpeter’s concept on creative destruction enable to analyze Indonesian Economic Sociology. Starting from Weber and Marx as the philosophy background of Schumpeter on Capitalism and Socialism, combined with Ibn Chaldun’s ashabiyah or social solidarity that highly influence the grand theory of some western Sociology scholars. The ashabiyah is emphasized where the social system containing not only the value but also spirit. The existence of the spirit enable to transform Puritan into the rational economic system namely capitalism as Weber mentioned in Protestant Ethic and Spirit of Capitalism. Social solidarity is one of the element in social capital shaping, in which creates the economic network. Capitalism according to Schumpeter’s monumental discourse “creative destruction” provided excellent instrument for economic mobility where the old system will be systematically replace into the new one. The actor of creative destruction in building group formation required sufficient social capital. Without social capital and the spirit of capitalism, the creative destruction process will not meet. Indonesian economic sociology will be feasible to be analyzed using creative destruction where in at the recent time Indonesia has insufficient of social capital to do so. This framework also explain that the lack of social capital in Indonesian society avoids Indonesia in adopting welfare state system substantively. The additional analysis due to welfare state and creative destruction is the notion that after providing the excellent instrument, the creative destruction process will be occurred not only in business activities, but expanded into the political system. Since the capitalism incessantly destroy the system itself from within by elaborating the instrument of socialism to support welfare state. It is notably that the emerging of welfare state will be marked by the decline of capitalism and the revival of socialism. This analysis is to explain the important statement of Schumpeter on “Can Capitalism survive? I don’t think it can”.