acceleration of creative destruction

“In brief, our hypothesis is that the new technologies that are being created bring
about larger negative externalities than in previous epochs by forcing the early and
premature obsolescence of products and firms they destroy. However, these externalities are
not adequately understood so that our evaluation of the contribution of the innovation to
NNP, to welfare and to employment is overestimated. This is the case, we have argued,
because the destructive power associated with Schumpeterian creative destruction has
increased markedly relative to their creative component, in contrast to previous epochs.
Creative destruction’s gentle winds have mutated into cyclones of destruction. Thus, our sense of well-being will probably not keep pace with even the slow economic growth being
predicted by Gordon, Summers, and Krugman. While the economy will be growing, albeit
slowly, we predict that our sense of well-being will be mysteriously lagging well behind.”

Click to access Has%20Creative%20Destruction%20Become%20More%20Destructive.pdf

2 responses to “acceleration of creative destruction

  1. This quote reminds me of essays that can be generated by the Postmodern Essay Generator. Not that I can’t makes sense, but that the sense it makes reveals something about the thinking and objects of the theorists. Have we become blind to the emptiness that crafted speech can engender, even while is sounds pretty and erudite?

  2. …such theory appears to me to demand a quantitative divergence from such intelligence . So much I could almost say that the author of that essay is not human. ;))

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