Let People Prosper Econ 101: Why Creative Destruction Fuels Progress | This Week's Economy Ep. 135
We shouldn’t fear progress. It brings countless benefits. Just think about how much easier it is to make plans with a friend today than 30 years ago—you can send a quick text and meet up in minutes, instead of calling a landline and hoping they’re home to answer.
Yet in the headlines, progress is often framed as a threat—from manufacturing jobs moving overseas to warnings that AI will cause mass layoffs. What’s often forgotten is that new industries rise to take their place. New jobs emerge. Entrepreneurs adapt and create.
This continual cycle of innovation and renewal—what economist Joseph Schumpeter called creative destruction—was recently spotlighted by the Nobel Prize in Economics awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt for their work on sustained growth through innovation. For great analyses of the prize, check out Brian Albrecht’s commentary and Justin Callais’s deep dive.
In today’s episode of This Week’s Economy, we’ll explore creative destruction, how governments often try to protect us from it, and why it’s best left to run its course.
You can catch the full episode on YouTube, Apple Podcast, or Spotify.
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