by David Stockman, DailyReckoning:
oseph Schumpeter, one of the great economists of all times, once described capitalism as “the perennial gale of creative destruction.” In Capitalism, Socialism, and Democracy (1942), he wrote:
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.
I believe fully in the virtues of free market capitalism. Its “creative destruction” creates gains in efficiency and leads to technological innovation. It produces rising incomes and living standards for everyone.