Creative destruction is a miracle. It's also a political problem
a day ago
- #economic growth
- #creative destruction
- #innovation
- Creative destruction is a key driver of economic growth, as highlighted by the Nobel Prize in Economics awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt.
- Economic growth over the past 200 years has led to significant improvements in life expectancy, food supply, child mortality, literacy, and access to education.
- Innovation and a culture tolerant of disruption are essential for sustained economic progress, as demonstrated by historical examples like the repeal of the Calico Act in 1774.
- While economic growth benefits society on average, it also creates losers, such as those displaced by new technologies or industries, necessitating social and political support systems.
- The fear of change, particularly in communities facing new developments, often stems from a desire to preserve the status quo, but change is inevitable and must be managed proactively.
- Growth and redistribution must occur simultaneously to ensure that the benefits of economic progress are widely shared and that those adversely affected are supported.
- Regulation can play a crucial role in mitigating the negative impacts of disruption, as seen in the labor norms established during the Industrial Revolution.
- The concept of 'Abundance' emphasizes the importance of focusing on economic growth and innovation while also addressing distributional concerns to ensure human flourishing.