According to Joseph Schumpeter (1942), the 'theory of creative destruction' describes a process by which:
A)new products unleash a gale of destruction that creates other new products.
B)new products unleash a gale of destruction that drives old products out of the market.
C)new products are created by the destruction of capital.
D)the creation of new products never involves the destruction of old products.

Question

Quizplus · Accepted Answer

According to Schumpeter's theory of creative destruction, new products and innovations lead to the destruction of old products and industries, driving them out of the market. This process of creative destruction is seen as the driving force behind economic growth and progress. Thus, the correct option is B - new products unleash a gale of destruction that drives old products out of the market.

According to Joseph Schumpeter (1942), the 'Theory of Creative Destruction