the incessant product and process innovation mechanism by which new production units replace outdated ones; coined by Joseph Schumpeter in 1942 as "the essential fact about capitalism"
his concept of gales of "creative destruction" that sweep through the economy. Torn asunder by the entrepreneurial utilization of technology, continual organizational innovation, and the rigors of competition, businesses rise and fall, driving the business cycle over time
in fact, the very idea of "creative destruction" comes entirely from Marx. Schumpeter is the only significant right-wing, procapitalist economist who actually took the trouble to read Marx carefully and seriously
Looking back at the past seventy years of production, both globally and in the United States, it is clear that the industry is never up nor down for long. Hypercompetitive battles to win customers in America’s “replacement” market and the current dominance of “localized” production models undergird a landscape of perpetual creative destruction.