Creative Destruction by W. Michael Cox and Richard Alm
Joseph Schumpeter (1883–1950) coined the seemingly paradoxical term “creative destruction,” and generations of economists have adopted it as a shorthand description of the free market’s messy way of delivering progress. InCapitalism, Socialism, and Democracy (1942), the Austrian economist wrote: “The opening up of new markets, foreign or domestic, and the organizational development from the craft shop to such concerns as U.S. Steel illustrate the same process of industrial mutation if I may use that biological term that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one. This process of Creative Destruction is the essential fact about capitalism. (p. 83)” http://www.econlib.org/library/Enc/CreativeDestruction.html (Links to an external site.)
Please prepare 100 words summary for class discussion on Monday
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