Political creative destruction ________.

Question

Quizplus · Accepted Answer

Political creative destruction, which involves the replacement of current political elites with new ones, can lead to a loss of power for the ruling government. In economies with extractive institutions, where the ruling elite benefits from the current system, this loss of power can be detrimental to them. In contrast, in economies with inclusive institutions, political creative destruction can lead to positive changes without necessarily harming the ruling government. Thus, option D is the correct answer as it highlights the negative effect of political creative destruction on the ruling government in an economy with extractive institutions.

Political Creative Destruction ________