Provide additional support for your classmates post on Topic: The Importance of “Creative Destruction”Economist Joseph Schumpeter said that “creative destruction” is essential for the positive advancement of every modern economy. Research and define “creative destruction” and explain what it means relative to the development and dissemination of new technologies. What positive and negative effects might “ creative destruction” have on customers, employees, products, companies, and society?Classmates post:Creative destruction can be defined as the deliberate dismantling of long-standing practices in order to create a path for innovation (Alm & Cox, 1999). Creative destruction was created by Austrian economist Joseph Schumpeter in 1942 (Alm & Cox, 1999). Schumpeter described creative destruction as innovations in the manufacturing process that increase efficiency; however, this term has been used in numerous contexts (Alm & Cox, 1999). Schumpeter observed real-life examples of creative destruction, such as Henry Ford’s assembly line; which gave him a better understanding of innovation (Alm & Cox, 1999). Creative destruction is commonly used to describe disruptive technologies such as the railroads or, in current time, the Internet (Alm & Cox, 1999).The theory of creative destruction undertakes that long-standing provisions and expectations must be destroyed to preserve resources and energy to be arrayed for innovation (Alm & Cox, 1999). The creative destruction theory uses economics as an organic and dynamic progression (McKnight, 2001). Which is in contrast with the static mathematical mockups of traditional Cambridge-tradition economics (McKnight, 2001) . That said, equilibrium is no longer the culmination goal of market progressions (McKnight, 2001). As an alternative, numerous shifting dynamics are repetitively reformed or substituted by innovation and opposition. Indirect by the term destruction, the progression inevitably results in underachievers and achievers (McKnight, 2001). Entrepreneurs and laborers in new technologies will inevitably generate disequilibrium and promote new profit opportunities; however, producers and laborers that are committed to the outdated technology will be left behind in the business world (McKnight, 2001). Creative destruction does promote innovation, yet, some concepts that are developed with this theory may set the world back or cause serious dilemmas. For example, due to the internet, we have social media which is linked to cybercrimes and mental illness.Alm, R., Cox, W. M., Munger, M., Norton, R., Ehrbar, A., & Hardin, G. (n.d.). Creative Destruction. Retrieved from https://www.econlib.org/library/Enc/CreativeDestruction.htmlMcKnight, L. W. (2001). Creative Destruction : Business Survival Strategies in the Global Internet Economy. Cambridge: The MIT
