Joseph Schumpeter viewed capitalism as a process of "creative destruction" because
A) profitable firms are bought out by larger firms.
B) capitalism would create wealth, but government would destroy it.
C) the creation of new products would destroy the market for existing products.
D) invention is a creative process, but most ideas are destroyed when entrepreneurs develop and market products.

Question

Quizplus · Accepted Answer

Schumpeter believed that capitalism thrives on the constant process of innovation, in which new ideas and products are introduced, creating new opportunities and markets, and simultaneously destroying old ones. The destruction of existing products and markets is seen as an essential aspect of the process of creative destruction, which drives economic growth and progress. Schumpeter argued that this process was essential to the long-term success of capitalism, as it was through innovation and creative destruction that new industries and markets were created.

Joseph Schumpeter Viewed Capitalism as a Process of "Creative Destruction