Creative Destruction

by Matt DeNoto

“If I had asked my customers what they wanted, they would have told me, ‘A faster horse.’” – Henry Ford

One factor of this great economic mess that does not come up often enough (in my humble opinion) is mention of the economic principal of creative destruction. It’s the driving force of progress. The same way arrows replaced knives and bullets replaced arrows, innovation equals market supremacy. Creative destruction is how industries that were once the best thing ever crumble into obsolescence as new ‘best things ever’ are created.

Creative destruction is the natural way of things, but it is always painful. Companies go bankrupt and workers lose their jobs as the world learns different, better ways to accomplish the same tasks. For example, our society no longer requires the services of blacksmiths.

Soon we may be saying the same about paperboys and gas station attendants.

Newspapers and automobiles have seen an unusual lack of innovation over the last couple of decades. But innovation cannot be held off forever. Not even by bailouts. Indeed, already companies that used to supply parts to the auto industry are repurposing themselves to provide parts for an industry with more growth potential: wind power.

Speaking of bailouts, there’s one other industry that has for too long seen far too little innovation…

Government.

Since the founding of this country, the government has been run in the same basic way by the same kind of people; rich, old, male, and white.

But we have changed our pattern, and innovation in government may really be on the way. Finally, something will truly ‘trickle down.’ Many criticize the new president for creating so many new offices, new government posts. Posts like Chief Technology Officer and Climate Advisor. But these positions are actually overdue. F or too long the government ignored all the different ways the world was changing around it. But it was only a matter of time before someone of the current generation (i.e. someone who knows what a BlackBerry is) made it to a position of power.

Websites of government agencies have always been notoriously unhelpful. But with a new administration calling the shots, one that understands that we live in the Information Age, things are changing. The old ways are crumbling.

For just one example, visit the webpage of the Environmental Protection Agency. On the bottom left side of the screen is a box titled ‘My Environment.’ Enter in your address or zip code, and a page will come up with all kinds of ecological information about your area, including air quality, water sources and cancer risk.

Creative destruction is all about the natural tendency of people to find the most efficient methods to overcome our obstacles. But to get there, we must leave behind our old, less efficient ways.