{Free eBook} Openness to Creative Destruction: Sustaining Innovative DynamismAuthor Arthur M. Jr. Diamond – Z55z.co

Life improves under the economic system often called entrepreneurial capitalism or creative destruction, butaccurately called innovative dynamism Openness to Creative Destruction Sustaining Innovative Dynamism shows how innovation occurs through the efforts of inventors and innovative entrepreneurs, how workers on balance benefit, and how good policies can encourage innovation The inventors and innovative entrepreneurs are often cognitively diverse outsiders with the courage and perseverance to see and pursue serendipitous discoveries or slow hunches Arthur M Diamond, Jr shows how economies grow where innovative dynamism through leapfrog competition flourishes, as in the United States from roughly 1830 1930 Consumers vote with their feet for innovative new goods and for process innovations that reduce prices, benefiting ordinary citizensthan the privileged elites Diamond highlights that because breakthrough inventions are costly and difficult, patents can be fair rewards for invention and can provide funding to enable future inventions He argues that some fears about adverse effects on labor market are unjustified, sinceand better new jobs are created than are destroyed, and that other fears can be mitigated by better policies The steady growth in regulations, often defended on the basis of the precautionary principle, increases the costs to potential entrepreneurs and thus reduces innovation The Great Fact of economic history is that after at least 40,000 years of mostly poor, nasty, brutish, and short humans in the last 250 years have started to live substantially longer and better lives Diamond increases understanding of why.

2 thoughts on “Openness to Creative Destruction: Sustaining Innovative Dynamism

  1. Aaron Aaron says:

    Why the 5 stars I d give it 10 if I could My guess is few people expect a book on economic policy or theory to be a pleasurable read, but this book is full of examples, anecdotes, and history that brings the author s ideas to life, making it enjoyable While being a good read may drive sales, importantly for voters and the politicians that pander to us, it shows just how important a dynamic economy is Lost jobs and bankrupt companies are a lot easier to mourn and fight to keep than jobs and companies that never were or aren t yet, but the necessity of that sometimes unpleasant churn becomes obvious as you read the book.As a longtime reader of the author s blog artdiamondblog.com I started the book with the expectation it would provide policy suggestions and examples supportive of a dynamic economy and Diamond does so masterfully throughout each chapter The book is easy to follow and understand as the chapters are systematically organized and labeled.The wonder of the book is the breadth of examples Diamond uses to show economic theory at work A sentence from page 47 seems to capture Diamond s style The best answer to such fears is to recount the past cases, such as the three just mentioned, where the fears have proved unfounded In that instance Diamond is referring to people who fear new technologies, and instead of relying on economic theory to explain why such thinking is wrong, he shows how it works in the real world He uses this show me system over and over throughout the book, recounting a wide variety of instances that support his arguments The author s seemingly endless and boundless examples are what make it such an interesting read.For someone who worries about our country s future and what will be passed on to future generations, my hope is lots of people will take the time to read this fantastic book The reader will come away with not only an understanding and appreciation for innovative dynamism as a system, but also an assortment of historical yarns that are themselves meaningful.

  2. Joshua Ammons Joshua Ammons says:

    This book does an excellent job of articulating and building on the works of Joseph Schumpeter Dr Arthur Diamond not only explains the virtues of innovation, but he takes seriously the challenges to creative destruction The book offers thoughtful critiques on many of the common concerns regarding markets It is an excellent read for Economics students, Professors in Economics, as well as anyone who wishes to have an informed opinion on technology and innovation.