The last thing we need right now is our government picking and choosing which dying industries to support just because people will lose their jobs.
If the industries are meant to die, they need to die so that others can take their place and put those people back to work. We need to let our system of innovation work though, just as it has worked for a few hundred years. We need to tear down the banking system, auto industry, and stop artificially supporting the housing market. This is not the time to protect things, this is the time to allow what our country does best, tear things down and build better things in its place.
Get started. As a result, the economy profited. In other words, there was little downside to this innovation. In contrast, destructive creation is when innovation leads to negative, net social and economic outcomes, though it might still benefit the originator or end-users of the new innovation. Destructive creation is a term used to describe when the introduction of new technology, new products, or new processes happens in a way that produces more damage to existing industries or consumption patterns than the total benefit of the newly introduced innovation.
This can occur through mechanisms like premature obsolescence of existing products, disruption of existing employment and investments, or unintended or unforeseen negative consequences of adoption and use of the new innovation. It can happen in any industry. The concept is derived from the idea of "creative destruction," which asserts that the process of industrial innovation revolutionizes economic structures from within.
Creative destruction refers to the way newer innovations destroy older economic structures while simultaneously creating new ones. The rise of a new technology often results in older technologies being replaced, and the industries, jobs, and ways of life that depend on the older technologies are destroyed as a result. The disappearance of the buggy whip industry is classically cited as an example of creative destruction.
With the advent and widespread adoption of the automobile and urban mass transit, people no longer use horse-drawn buggies to commute, so the demand for whips to drive the horses has mostly been destroyed and so has a previously profitable industry that produced them. But the benefit to commuters of using cars, trains, and buses and the value of an investment in the related supporting industries that have been created outweighs the loss of jobs and investment opportunities in the buggy industry.
One might also weigh the elimination of the cost of manure pollution in cities and potential concerns about animal cruelty as unintended benefits in this transformation. In destructive creation, the cost of the industries, jobs, and investment opportunities destroyed plus any other unintended consequences to the economy, society, or environment appear to outweigh the benefits of a new product or technology. Major, long-term investment projects in the older technology might be driven into bankruptcy in favor of a small, incremental improvement in functionality.
Large numbers of skilled workers in an existing industry can be forced into unemployment or underemployment in lower-value occupations. New technology might turn out to cause drastic health, environmental, or economic damage that comes to light too late, after it is adopted and the older technology is replaced. Financial innovations can become more destructive than productive, and when financial innovation results in more harm than good, it is considered destructive creation.
Some types of derivatives , structured investment products, and non-conventional mortgages have fallen under public scrutiny in recent years as innovations that prove to bring more harm than good.
The term destructive creation was popularized during the financial crisis and recession of — when, partially as a result of financial innovations like derivatives and non-conventional mortgages, the entire global economy declined, destroying millions of jobs and producing several trillions of dollars in economic damage. In the technology sector, numerous examples of destructive creation can be found.
Network effects and path-dependencies play an especially powerful role in these industries, which can lead to large, unrecoverable costs to the industry and costly, durable electronic goods in the hands of consumers that lose value or become unusable as new technologies develop. Musical guests will be Hearts and Bones. Big Valley and Beaver Creek wines will be available for purchase by the glass. Since the Valley Fire, the center has provided a strong sense of continuity, community and enrichment to recovering residents and the area, Lisa Kaplan, of MAC, said in a statement.
So the fact that they burn the money is ironic. Man is a creation of desire, not a creation of need. Inaction breeds doubt and fear. Action breeds confidence and courage. If you want to conquer fear, do not sit home and think about it. Go out and get busy. We have weapons of mass destruction we have to address here at home. Poverty is a weapon of mass destruction. Homelessness is a weapon of mass destruction.
Unemployment is a weapon of mass destruction. We build to destroy and we live to die, that's the eventuality of it. Nothing lasts forever. It's sad to note that sometimes we are the destroyers and killers.
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