{"id":1635,"date":"2017-01-31T11:40:25","date_gmt":"2017-01-31T16:40:25","guid":{"rendered":"http:\/\/blogs.nd.edu\/entrepreneurlaw\/?p=1635"},"modified":"2017-02-07T08:55:40","modified_gmt":"2017-02-07T13:55:40","slug":"example-of-creative-destruction","status":"publish","type":"post","link":"https:\/\/sites.nd.edu\/entrepreneurlaw\/2017\/01\/31\/example-of-creative-destruction\/","title":{"rendered":"Example of Creative Destruction"},"content":{"rendered":"

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:
\nhttps:\/\/www.nytimes.com\/2017\/01\/12\/business\/economy\/amazon-jobs-retail.html?_r=0<\/a><\/p>\n

As we discuss public policy in class, I think this passage will be of value:<\/p>\n

“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.<\/p>\n

\u201cThe economy as a whole gains from creative destruction, but we don\u2019t put many resources into training displaced workers,\u201d he added. \u201cThat\u2019s a real problem, and in practice, we need to do much more.\u201d”<\/p><\/blockquote>\n