Dec 14, 2018

Creative Destruction

Post by Freedom Partners

Why do you use lightbulbs instead of candles? Why do you use a computer rather than clack away on a typewriter?

The answer is creative destruction.

“It’s the idea that when new, life-enhancing innovations are created, the status quo is destroyed,” says Dan Mitchell, co-founder and chairman of the Center for Freedom and Prosperity, in his newest Freedom Partners trade video, Creative Destruction.

“The natural reaction for some is to reject change by, for example, imposing tariffs and other policies to protect current industries from competition.”

While it may hurt a few in the short term when these industries disappear, no one could deny that we’re all better off when we foster innovation, growth and trade. The result is that we have greater access to newer, cheaper and higher quality goods and services.

“Would anyone argue that we’d be better off if the government banned lightbulbs in order to protect candlemakers, or if they banned computers to protect typewriter jobs? Of course not!” Dan Mitchell says.

Tariffs and many other unnecessary regulations on innovation simply hold us back. Dropping these barriers allows us to achieve greater prosperity.