What did Schumpeter mean by the term 'creative destruction'?
A) That in the competitive process new business ideas would replace older ones, and that this process of innovation would inevitably mean that change would occur with old companies, products, or processes being replaced by new ones
B) That new ideas may sometimes have harmful effects
C) That capitalism as an economic system would destroy itself through competition
D) That because businesses were under pressure to invest in new technology, they would constantly be facing falling profits and would inevitably fail

Question

Quizplus · Accepted Answer

Schumpeter's concept of 'creative destruction' refers to the cyclical process in capitalism where innovation and new technologies lead to the obsolescence of older ones, driving economic evolution and growth by replacing outdated companies, products, or processes with newer, more efficient ones.

What Did Schumpeter Mean by the Term 'Creative Destruction