While I cheerfully agree with the main point of Gary North’s article — that the market is essentially creative and productive to all except to the entrepreneurs who guessed wrong — there is one bit that I want to comment on.
The phrase “creative destruction” was popularized by the Austrian, but not Austrian School economist, Joseph Schumpeter….
Wikipedia’s entry for “Creative Destruction” says:
Creative destruction (German: schöpferische Zerstörung), sometimes known as Schumpeter’s gale, is a concept in economics which since the 1950s has become most readily identified with the Austrian American economist Joseph Schumpeter who derived it from the work of Karl Marx and popularized it as a theory of economic innovation and the business cycle.
Any concept picked up from Karl Marx is likely to be filthy — not only wrong, but evil — including that of class warfare. Libertarian class analysis, focusing on how the Right Sort use State Power to steal from you and me, and give to themselves and their friends, is much more to the point.
According to Schumpeter, the “gale of creative destruction” describes the “process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one”. In Marxian economic theory the concept refers more broadly to the linked processes of the accumulation and annihilation of wealth under capitalism.
Marx had it wrong. So did Bakunin. So did Schumpeter.
True. The claim of “regeneration through chaos” is quite Satanic at the core, an attempt to build Creation without a lawful Creator, something from nothing.
Gary North’s cover gets the ideal across nicely:
To continue to my personal Trigger Point:
Schumpeter borrowed the concept from a pair of revolutionists, Bakunin and Marx. They preached rival social philosophies that were both based on literal murder, not figurative murder. Schumpeter was impressed by their concept. Felix Somary records in his autobiography, The Raven of Zurich (1986), a discussion he had with the economist Joseph Schumpeter and the sociologist Max Weber in 1918. Weber was the most prestigious academic social scientist in the world when he died in 1920. Schumpeter expressed happiness regarding the Russian Revolution. The USSR would be a test case for socialism. Weber warned that this would cause untold misery. Schumpeter replied, “That may well be, but it would be a good laboratory.” Weber responded, “A laboratory heaped with human corpses!” Schumpeter retorted, “Every anatomy classroom is the same thing.” Weber stormed out of the room (p. 121). I don’t blame him. (I am indebted to Mark Skousen for this reference.)
These loathsome materialist make me gag.