The capitalist system is also the system of Creative Destruction. It is industrial evolution driven by the rise of new innovations and the downfall of old technologies. Kodak’s demise is a perfect example. Kodak developed the first digital camera and then buried the development to protect its very existence.
Excerpt from Why Nations Fail by Daron Acemoglu and James Robinson
in 1589 William Lee, an Englishman, had perfected a knitting machine and presented it to Queen Elizabeth for a patent. She refused to grant Lee a patent, instead observing, “Thou aimest high, Master Lee. Consider thou what the invention could do to my poor subjects. It would assuredly bring to them ruin by depriving them of employment, thus making them beggars.” Crushed, Lee moved to France to try his luck there; when he failed there, too, he returned to England, where he asked James I (1603-1625), Elizabeth’s successor, for a patent. James I also refused, on the same grounds as Elizabeth.
Both feared that the mechanization of stocking production would be politically destabilizing. It would throw people out of work, create unemployment and political instability, and threaten royal power. The stocking frame was an innovation that promised huge productivity increases, but it also promised Creative Destruction.
I don’t know the solution. I do know that there aren’t many blacksmiths or candle makers anymore.
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Awesome post. I didn’t know that and am always glad to learn something new. You brought up a really good point, one that i am not sure if can be solved. Hopefully though, somehow, there can be a way to retrain people that have lost their jobs thru the mechinition of our society.