Sunday, December 20, 2009

People Unclear On The Concept

The concept of creative destruction is that innovation and entrepreneurship are what drive long-term economic growth, even though the value of established companies may be diminished or destroyed. George Will doesn't quite get it:
You must remember this: In 2006, the last full year before this downturn, when the economy grew 2.7 percent and the unemployment rate was just 4.6 percent, 3.3 million people lost their jobs to the normal churning of a dynamic economy. This "creative destruction" has human costs but no longer is optional.
George, when there's no innovation behind the crumbling edifices of established industry, they must be propped up with huge government subsidies and bail-outs to keep the situation from becoming significantly worse, and the economy is sputtering, that's not creative destruction. It's just destruction.

Update: Tom Burka's take on things: Democrats To Actually Vote For Own Bill.

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