Creative Destruction

[David Morris]

The original source of the term:

"The opening up of new markets, foreign or domestic, and the
organizational development from the craft shop 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. (p. 83)"

Y'all (Ian & Richard) are taking this "creative destruction" way too
political/literal for my taste.  The Pynchonian aspects in my eyes
are:

1.  Most directly, Luddism Vs CD.  The human (and inevitable) cost of
"progress."
2.  Anthropomorphizing of "Capitalist Progress," as if it were an
autonomous creature.
3.  Inherent Imperialism of Capitalism: "opening up of markets," and
thus justification of the human costs.

I'm just surprised I've never see TRP use the term.

Davis Morris

On Wed, Jan 18, 2012 at 10:34 AM, David Morris <fqmorris at gmail.com> wrote:
> This term is flying through political blogs lately in reference to
> Romney's Bain Capitol leadership.  I hadn't heard of it before, but it
> seems a concept that is central to much of TRP's concerns.  I'm
> susrpised I've never seen in in his books.  Have I just missed it?
>
> http://www.econlib.org/library/Enc/CreativeDestruction.html
>
> "Herein lies the paradox of progress. A society cannot reap the
> rewards of creative destruction without accepting that some
> individuals might be worse off, not just in the short term, but
> perhaps forever. At the same time, attempts to soften the harsher
> aspects of creative destruction by trying to preserve jobs or protect
> industries will lead to stagnation and decline, short-circuiting the
> march of progress. Schumpeter’s enduring term reminds us that
> capitalism’s pain and gain are inextricably linked. The process of
> creating new industries does not go forward without sweeping away the
> preexisting order."