“Although Schumpeter devoted a mere six-page chapter to “The Process of Creative Destruction,” … it has become the centerpiece for modern thinking on how economies evolve. This process of Creative Destruction is the essential fact about capitalism. 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. “The opening up of new markets, foreign or domestic, and the organizational development from the craft shop to such concerns as U.S. Michael Cox and Richard Alm, in The Concise Encylopedia of Economics (reference below), describe how generations of economist have adopted Joseph Schumpeter’s seemingly paradoxical term, creative destruction, as a “shorthand description of the free market’s messy way of delivering progress.”Ĭox and Alm cite the following quotation from Joseph Schumpeter’s Capitalism, Socialism, and Democracy (1942: Joseph Schumpeter, 1883-1950 Concept description
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