Comments on: Creative Destruction? #5 http://caddellinsightgroup.com/blog2/2009/06/creative-destruction-5/ A wide-ranging discussion of important business-related matters, such as innovation, risk, understanding customers and managing groups Wed, 03 Mar 2010 16:10:33 +0000 http://wordpress.org/?v=2.8.4 hourly 1 By: Customers Are Talking » Blog Archive » Creative Destruction? #6 http://caddellinsightgroup.com/blog2/2009/06/creative-destruction-5/comment-page-1/#comment-857 Customers Are Talking » Blog Archive » Creative Destruction? #6 Thu, 23 Jul 2009 15:49:15 +0000 http://caddellinsightgroup.com/blog2/?p=1283#comment-857 [...] Prior posts in this series: Creative Destruction? Creative Destruction? #2 Creative Destruction? #3 Creative Destruction? #4 Creative Destruction? #5 [...] [...] Prior posts in this series: Creative Destruction? Creative Destruction? #2 Creative Destruction? #3 Creative Destruction? #4 Creative Destruction? #5 [...]

]]> By: jmcaddell http://caddellinsightgroup.com/blog2/2009/06/creative-destruction-5/comment-page-1/#comment-806 jmcaddell Mon, 15 Jun 2009 22:28:56 +0000 http://caddellinsightgroup.com/blog2/?p=1283#comment-806 Hi, Bob,<br><br>I hadn't thought about creative destruction from that perspective until your note. I was feeling that there is this assumption about creative destruction that is pretty uniformly positive (which you also state), but that the reality isn't clear. My ambivalence about it is contained in the ? in each post title.<br><br>Your scenario is one plausible one. Government-controlled enterprises, along with their innate distortions (i.e, a bailed out GM competing with a standalone Ford) are definitely on the upswing.<br><br>I think at some level the destruction part of creative destruction didn't work as well as expected with the biggest enterprises, which have caused the biggest problems. GM has been rotting from the inside for 30 years, and only now collapsed. Bank of America and Citibank built colossusses on foundations of sand, and now the taxpayer is out hundreds of $billions as a result.<br><br>It's a fascinating time to live through, isn't it! Hi, Bob,

I hadn't thought about creative destruction from that perspective until your note. I was feeling that there is this assumption about creative destruction that is pretty uniformly positive (which you also state), but that the reality isn't clear. My ambivalence about it is contained in the ? in each post title.

Your scenario is one plausible one. Government-controlled enterprises, along with their innate distortions (i.e, a bailed out GM competing with a standalone Ford) are definitely on the upswing.

I think at some level the destruction part of creative destruction didn't work as well as expected with the biggest enterprises, which have caused the biggest problems. GM has been rotting from the inside for 30 years, and only now collapsed. Bank of America and Citibank built colossusses on foundations of sand, and now the taxpayer is out hundreds of $billions as a result.

It's a fascinating time to live through, isn't it!

]]> By: Bob May http://caddellinsightgroup.com/blog2/2009/06/creative-destruction-5/comment-page-1/#comment-805 Bob May Mon, 15 Jun 2009 03:09:51 +0000 http://caddellinsightgroup.com/blog2/?p=1283#comment-805 This is really interesting, John. I think my next non-fiction book I read will be by Shumpeter. I'm not yet convinced this is the correct way to think about the problem. Don't you think we are about to enter into an era where the projects being destroyed will be privately owned enterprises, and the replacements will be government owned enterprises? Maybe the future of creative destruction is the model of the PA LCB? That was created out of the Great Depression, replacing all private liquor stores - and we still have it today. What if in this current recession, they destroy all the private gas stations and replace them with the PA Gasoline Control Board? We can buy all our gas from the PA GCB? I think the weakness of the creative destruction argument is that it assumes the replacement will be privately owned, but, in fact, history shows us that a private failure is often replaced by a government run enterprise, which could mark the end of progress in that field of enterprise. Any ideas on that? This is really interesting, John. I think my next non-fiction book I read will be by Shumpeter. I'm not yet convinced this is the correct way to think about the problem. Don't you think we are about to enter into an era where the projects being destroyed will be privately owned enterprises, and the replacements will be government owned enterprises? Maybe the future of creative destruction is the model of the PA LCB? That was created out of the Great Depression, replacing all private liquor stores – and we still have it today. What if in this current recession, they destroy all the private gas stations and replace them with the PA Gasoline Control Board? We can buy all our gas from the PA GCB? I think the weakness of the creative destruction argument is that it assumes the replacement will be privately owned, but, in fact, history shows us that a private failure is often replaced by a government run enterprise, which could mark the end of progress in that field of enterprise. Any ideas on that?

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