What is creative destruction?

Creative destruction is a concept that assumes that in a healthy capitalist system, old things that suffer from previous economic and technological systems are constantly overtaking to allow progress. In a simple example of this concept, the arrival of available cars was caused by the use of horses to decline. Some people believe that the process of creative destruction is vital for maintaining a healthy economy and that if the economy is to prosper, this process must be allowed. Others feel that, uncontrolled, it can harm the economy or well -being of the population. Joseph Schumpeter is generally attributed to raising awareness of creative destruction, in his 1942 book capitalism, socialism and democracy. In fact, this concept has evoked as part of a greater discussion on how capitalist systems will eventually turn into socialist, but many economists leave this part, focusing exclusively on creative destruction. People who are able to think outside the box and predict buGreen trends on the market can use creative destruction for their advantage and develop products that will replace products currently on the market. In addition to negotiations with products, this concept also applies to supply lines, techniques of management, advertising and many other aspects of the business world.

The idea of ​​creative destruction may seem common sense for some people: if the new product or method is better, of course many people will follow it to accept it, thus eclipse of an old product. However, creative destruction has some far -reaching consequences. The rise of internet media, for examples, threatens traditional print newspapers. While some people claim that the death of press newspapers is a natural and acceptable part of the development of modern culture, others feel that print papers, magazines and magazines are an important source and that the loss of this source could have unpleasant consequences.

when it is disturbedAnd creative destruction, there may be other problems, sometimes to create a will. For example, government assistance to failing companies could be considered as an interference with the free market capitalism and as promoting innovation. Similarly, protests on the use of robotics and mechanized systems in production also prevent the process of creative destruction and at the same time emphasize the situation of workers who will be replaced by the unemployed after the replacement of machines.