Writing in 1942, Joseph Schumpeter observed that it was in the nature of capitalism to make progress by means of “creative destruction.” There has been much destruction in the financial sector over the past year: of asset prices, of banks and of confidence. It is not yet widely recognised that this has been part of a creative process, but there is good reason to think that it is.
Asset prices were overvalued, banks were poorly managed and confidence turned out to be complacency in disguise. The time was ripe for a Schumpeterian mutation.
If you are a subscriber, please log in »
This article is available to subscribers only
Subscribing to Prospect is the most reliable and convenient way to receive the magazine every month, and offers the best value.Subscription Types:
Online
An online subscription offers you complete and unlimited access to the entire website, including our searchable archive of every back issue of Prospect, and a PDF edition of each new issue: all this for just £20 per year. Purchase an online subscription »Renewal
Renew an existing subscription »Institutional access
If you are a library, business organisation or any other large institution that needs a multi-user licence, you can obtain institutional access.
Share
Subscribe to post comments
Print
