I found “The Process of Creative Destruction” chapter by Schumpeter to be fairly thought-provoking, particularly the notion that capitalism is not static but rather is an ever-changing process. Since it was heavily theoretical, I thought his hypothetical regarding the retail stores at the end of the chapter really crystallized the process he was discussing. This NYT article gives a real life example of that hypothetical, and delves further into some of the problems and possible solutions:
As we discuss public policy in class, I think this passage will be of value:
“One place to start, Mr. Katz said, would be for the government to provide more funding for retraining and also develop a wage insurance program to cover differences in salaries as workers migrate to new, lower-paid jobs from disappearing, higher-paid ones.
“The economy as a whole gains from creative destruction, but we don’t put many resources into training displaced workers,” he added. “That’s a real problem, and in practice, we need to do much more.””