Creative Destruction | Assignment
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Added on 2020-04-01
Creative Destruction | Assignment
Added on 2020-04-01
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Creative Destruction 1CREATIVE DESTRUCTIONBy (Student’s Name)Professor’s NameCollegeCourseDate
Creative Destruction 2CREATIVE DESTRUCTIONQuestion 1:Creative destruction was coined by Joseph Schumpeter and details the process ofmutation of industries which ceaselessly transforms economic structure right from within,continually abolishing ancient one, relentlessly establishing a novel 1. It takes place whereinnovation deconstructs long-standing arrangements thereby freeing resources for elsewheredeployment. It can as well as be looked at as the process by which capitalism culminates in aconstantly altering economic structure (Kirchhoff, Linton and Walsh 2013). Ancient industries aswell as firms that are no longer profitable, shut down allowing resources, both labour and capitalto be shifted into increasingly productive processes. It means that a closure of a company and joblosses remain good for long-term economy’s well-being. The example unmentioned in the videois luddites. Question 2:The economist believe that the effects of creative destruction on labor market could bedissimilar currently compared to the past observation. This is because there is a never aguarantee that the workers who lose jobs have sufficient skills required to be deployed to othernewly created jobs hence further forcing the government intervention. Moreover, creativedestruction has led to many people being replaced by machines that can now do a job thatinitially employed many (Woodbury 2017). Question 3:The free-market economist have viewed creative destruction as an essential as well asinevitable economic development process and generally oppose the attempts by the governmentto hold back the process of decline as well as renewal. This is an optimistic view as economist
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