Sean King

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Knoxville, Tennessee, United States

Sunday, July 27, 2008

Capitalism as Creative Destruction

Joseph Schumpeter: The opening up of new markets, foreign or domestic, and the organizational development from the craft shop and factory to such concerns as U.S. 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. This process of Creative Destruction is the essential fact about capitalism. It is what capitalism consists in and what every capitalist concern has got to live in. . . .. [emphasis added]

And here's a recent example of that Creative Destruction in action.

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