The developed economies are currently experiencing profound changes.Alan Greenspan The Age of Turbulence (2008) Chapter Three, "Economics Meets Politics", p.Yet deregulation set the stage for an enormous wave of creative destruction in the 1980s.
True, most of the benefits took years to unfold-rail freight rates, for example hardly budged at first. It's hard to overemphasize how important Ford's deregulation was.John Kenneth Galbraith, "The Unfinished Business of the Century" (1999).Unfortunately the process has larger and less benign effects, including the possibility of painful recession or depression. My one time Harvard colleague Joseph Schumpeter thought inevitable and even beneficial what he called “creative destruction” - the cyclical process by which the system eliminates the people and institutions which are mentally too vulnerable for useful economic service. This has been the standard justification of speculative excess for several centuries - for a good part of the millennium. But some things are definite when you hear it being said that we have entered a new economy of permanent prosperity with prices of financial instruments reflecting that happy fact, you should take cover. I am cautious about prediction I discovered years ago that my correct predictions are forgotten, the others meticulously remembered. We have far more people selling derivatives, index funds and mutual funds (as we call them) than there is intelligence for the task.Manuel Castells, Materials for an exploratory theory of the network society (2000).
It proceeds by linking up all that, according to dominant interests, has value anywhere in the planet, and discarding anything which has no value or becomes devalued, in a variable geometry of creative destruction and destructive creation of value.
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