EconTalk Arthur Diamond on Openness to Creative Destruction
Aug 12, 2019
Arthur Diamond, a philosopher and economist from the University of Nebraska at Omaha, delves into the essentials of innovation and entrepreneurship in his discussion. He highlights how creative destruction, a concept by Schumpeter, fosters higher-quality job opportunities. Diamond underscores the need for more focus on entrepreneurship in economics education, critiques heavy regulations hindering healthcare innovation, and advocates for the creative potential of non-experts. He champions the idea that private innovators, rather than government initiatives, often drive significant technological advancements.
AI Snips
Chapters
Books
Transcript
Episode notes
The Great Fact
- The "Great Fact" of economic history is the dramatic improvement in human living standards over the past 250 years.
- Arthur Diamond attributes this primarily to creative destruction, a core principle of capitalism.
The Importance of Creation
- Creative destruction, while involving job losses, ultimately leads to better jobs and a higher quality of life.
- The creative aspect of this process is often underemphasized, while the destructive aspect is overblown.
Brunelleschi's Triumph
- Brunelleschi, after losing a competition, went on to achieve greater success by designing the Duomo.
- This illustrates how, in the long run, creative destruction can benefit everyone, even initial "losers".
