Creative Destruction

I find there is much confusion about Creative Destruction, not the least shared by myself; so I may not be the best Source to explain the Concept. I am, therefore, probably one of the most ineffectual advocates of the Process. The Reader can research the Term, and find actual qualified Definitions for the economic theory. I will try a Statue of Liberty play, though, to attempt to get to the heart of the matter, and will be properly vilified when it falls woefully short of the scrimmage line.

Way back in the Dark Ages, Karl Marx co-opted a theory of Action/Reaction/Synthesis which he did not originate, and may have understood as well as I do Creative Destruction. Plodding Minds since that Time have always assumed a pathological Step process of progression, where Results come in stages. Creative Destruction, on the other hand, assumes the first two forces start simultaniously, creating a balancing opposition in any and every Market situation in which they apply, the new balance being the continuous operating Synthesis. Mechanisms such as Capital Costs, Construction Costs, and Operating Costs act as the adjustment levers by which the new Synthesis balance is maintained.

The key of Creative Destruction lies in the equality of power between the two opposing forces. Impediment to One will lead to the constraint of the Other. This Constraint appears as adjustments in the operating mechanisms discussed above. Economists can now explain to their Students that this is not what Creative Destruction is about at all. I introduce it simply to explain the effect of Creative Destruction on ancilliary Market Flow mechanisms. lgl