Explaining Creative Destruction
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Last updated 4 Feb 2023
The concept of creative destruction is explored in this short revision video. The term “creative destruction" was first coined by Joseph Schumpeter in his book Capitalism, Socialism and Democracy in 1942. Schumpeter was an economist of the Austrian School which advocated a laissez-faire approach to economic policy.
Who was Joseph Schumpeter?
Joseph Alois Schumpeter (February 8, 1883 – January 8, 1950) was an Austrian-American economist and political scientist.
He was a prominent economist of the 20th century and is best known for his works on innovation, entrepreneurship, and economic development. Schumpeter is considered a pioneer in the field of innovation economics and is famous for his concept of "creative destruction," which refers to the idea that economic progress is driven by the displacement of old technologies and industries by new and more efficient ones.
He is also known for his contributions to the field of business cycle theory and for his view that entrepreneurs play a crucial role in the process of economic development. Schumpeter's works continue to be widely studied and have had a lasting impact on modern economics and economic policy.