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Economist Joseph Schumpeter first pioneered the idea of creative destruction. The basic notion is that new technologies will "destory" older ones - i.e. mp3s killed CDs, CDs killed tapes, tapes killed records, etc... In this article from The Economist we can see the process of creative destruction graphically. Are you surprised at all by this? Does the economy in any way relate to evolution as Darwin put it? From societies point of view, are we helped by newer and better technology even though it kills the jobs and profits of anyone making "old" products?
R10405137
2/23/2012 06:52:33 pm
I am not suprised by the information at all. Being a gamer, having played Atari, I've seen the same scenario in the gaming industry. I feel for the people that lose jobs and businesses based on old technology but I believe its a fact that has to be faced. This reminds me of the "Big 3" bailouts in the auto industry. Should they have been left to fail as was Commodore 64, Atari ST, or Amiga; I think so.
R1031654
3/1/2012 11:09:29 am
I don't know if that is a great comparison, the old video game industry to the auto industry. The auto industry is much larger and there was talk of US economy taking a serious hit if those companies failed. The economy didn't fail when we lost Atari, the difference in scale of the companies is just too large to be that comparable.
R#10427556
2/24/2012 09:22:39 am
As time passes by, new technological innovations occur in our lives. Those innovations have a great impact on our daily basis life style, our folkways and morality. It’s not surprising that old technologies are replaced by modern and improved ones, supporting Darwin’s theory “survival of the fittest”. New products can profit society by creating more job opportunities and increasing the quality of life.
matt huebert
2/25/2012 08:54:26 am
I like the idea of this. I think it is the best example in society of economics that isn't necessarily money. Its all about supply and demand. like the article said, i do not demand cd's anymore because i am now supplied with mp3. i think this also holds true to just new ideas, the "market" way to buy goods no longer exists, as super markets like, walmart and target are a more effecient system.
#R10465114
2/28/2012 04:15:32 am
Well, in some cases, not only is the technology easier and more efficient, it IS cheaper. MP3 players and CD's is a great example. As soon as people could buy entire digital CD's for less than 10 dollars, while the average CD still sells for 15$, even discounting the effects of piracy and other free accessibility sources, shelling out the extra hundreds for an MP3 player ends up being economic pretty darn fast, particularly for the avid music listener.
Jamal Atwell
2/26/2012 06:50:52 am
The information is not at all surprising. One would expect older forms of technology to vanish when new developments are released. In some cases companies adapt and some crumble. Companies like Apple and Microsoft are continuously adapting to the technological shifts and staying on top. Economics does seem to have a little similarity to darwin's "only the strongest" survive theory because only the best company will adapt and continue.
R#10440115
3/4/2012 03:35:02 pm
Business is all about keeping up with the latest trends and constantly developing new ways to rise above the competition. Of course, the data reveals this pattern of "survival of the fittest" to be a relevant factor in determining the success of businesses. If a company is unable to adapt it will quickly be outpaced by its competitors. This pattern is essential for continual growth and is a core element of a free market economy. 2/28/2012 04:57:31 am
The Lion King put it best. (circle of life). I am an avid believer in balances of everything. Something is born and as it gets older, it brings on new ideas for improvements and the birth of something new comes from it.(tapes to cd's) IT dies and thats life.
R10446726
3/5/2012 01:10:29 pm
I like this analogy. "Circle of life" is a good way of putting it. The new and more advanced replaces the old and outdated. When a new and improved model comes out, who wants to stick to the old one?
R10409604
3/6/2012 09:07:20 am
I love your example of this idea! I agree with your logic that people are always looking for the next best thing and companies are all going to work to get the newest and best.
R10375157
2/28/2012 01:44:49 pm
I believe that this is not exactly hurting the economy as much as it helps the economy. I believe new technology does make an impact in everyone's life and creates easier ways to access now everyday tasks. There is no way of stopping new technology, it comes as we progress through time. It's going to happen.
Wesley Quigley
2/28/2012 04:14:31 pm
I think Darwin's evolutionary theory of "survival of the fittest" definitely relates to economy, especially in this example. The idea that the weak die while the strong live on works with both the advancement in technology and the jobs of people who make old products.
R10407550
3/5/2012 12:12:40 pm
It is like a big circle of demand. The same thing happens with the people working. Once the get old enough they retire and someone new and young replaces them. Without this circle nothing would work.
R#10424321
3/6/2012 05:25:27 am
I agree with the thought that this is a big circle of demand. If we always had the same products around then eventually everyone would have it and the demand for it would go down. New products have to be introduced into the marketplace in order to maintain competition and keep the demand up
R10412481
2/29/2012 03:13:55 am
New technology is going to outrun old technology. Thats just how our world works. Would you rather have 15 songs on a CD or 1,500 songs on an iPod or MP3 player? We all know that the iPod/MP3 player is going to be more expensive, but in the long run buying 100 CDs with 15 songs on each CD is very outdated. Who wants to carry around a binder full of CDs? Who even owns a CD player anymore? Yes, we are always being helped by new technology.
R#10410186
3/5/2012 05:43:18 am
New technology is just bound to happen. People want NEW things in the market, because the people demand it. Everything in this world is meant to be replaced. Its a fact we have to faced. People retire from job and new people replace it. Same with technology, it is just how the cycle works.
R10453152
3/5/2012 10:53:59 pm
Society is going to keep wanting the next best technological inovation, and with that big of a demand the old technology is going to be left behind and eventually fall unless theycan keep up with the new.
Caroline Andrews
3/6/2012 01:57:59 am
There will always be newer better things. Technology plays a big part in this. I agree with most of the previous comments above stating that once something newer comes out, not many want to stick to the older thing. I mean an example is cell phones in general. Majority of us have a smart phone now days, I don't know many people who want to go back to the regular cell phone.
10469266
3/6/2012 05:42:34 am
The economy will most likely end up evolving like people have. Our needs and wants change, as does how advanced our society is. If we didn't make newer and better tech to buy and use, we wouldn't be advancing as a species, and at that point we wouldn't really be able to increase how effcient we are, which seems to be the ultimate goal.
R10368003
3/6/2012 06:05:21 am
I agree with the above comment. We are evolving along with technology. If we leave the market ope and let competition rise it will only bring forward the best technologies and advance our species that much more.
R10403116
3/6/2012 07:09:09 am
The data presented in this article did not surprise me at all, in fact it made perfect sense. As far as the economy relating to evolution as Darwin put it, I would say that it definitely relates. The best products, or animals in Darwin’s case, are going to be the ones that make it and succeed. From the view point of society I would have to say that newer and better technologies benefit the economy, because in the long run the new technologies will actually create new jobs.
R10462716
3/6/2012 08:45:10 am
Technology is always advancing; every day new ideas are brought up and produced. This article isn’t surprising; many of the gadgets used today, may not even be used a couple years from now. When dates are posted for new technology, stores are filled with customers wanting to replace their old gadgets. This chain will continue on and on without stop, some jobs are lost but others are created same as interest. In the older days people played with simple toys, now kids are playing with X box And PS3. As far as this goes it’s just a part of life.
R10497053
3/6/2012 09:41:19 am
I agree people are always going to want what is new, one reason is that it make them look like they have the money to do it, another reason is that its new. Plus over time the graphics will get better and better, look back to the iPod mini and the first iPod nano, or any number of video games when the wii came out it was a big step going from a controller to having to move
10326603
3/6/2012 10:08:51 am
Over time our taste in preferences changes. As comments have said above, Darwin's "survival of the fittest" can be applied to this article because the products continually being made better are the most successful. In order to extend to the outer point on the PPF there has to be an increase in technology or innovation. This is what's happening with new things replacing the old. If older technology wants to keep up with today then they are going to have to update their products with the times so they can compete on the same stage.
R10175535
3/6/2012 02:42:09 pm
I agree with and love your analogy of Darwin's "survival of the fittest" This aspect can be attributed to most if not most aspects of life so why would technology (which is a predominant part of our lives) be any different?
David Yeary
3/6/2012 10:10:10 am
I agree that the consumers will always want wants new and shiny and if the dying technologies don't put forth the effort to continue evolving they should and will die.
Robert Ainslie
3/6/2012 10:10:41 am
From looking at the graph given it says that the Android has passed up the iPhone but I'm not sure I agree that the Android has brought more revenue to there prospective companies. I've seen similar graphs that have said the complete opposite of what this one portrayed.
R#10416464
3/6/2012 01:48:37 pm
The iPhone, unlike Android, was ONLY offered to At&t customers for years; due to At&t's strict contract with Apple. Android, when released, became available to all mobile services, also beating the iPhone with a cheaper data plan. People were (and still are) caught up on having an "iPhone" simply for the name, when an Android has similar features.
R10441854
3/6/2012 10:34:03 am
This plays a huge role in the unemployment rate of today along with the benefits of outsourcing. Advancements in technology are taking the need for workers out of the picture. Which means you have less people to pay, and in the long run have higher revenue. That's why the job market is so competitive, along with the education expectations of todays society.
R10461966
3/6/2012 10:50:53 am
I apologize in advance if someone has already pointed something like this out already, but as much as we (citizens of the US) hate the idea of a major company being at war with a similar company thus risking going out of business, this ultimately helps future technological advances. The technological society is moving forward at a rapid pace. It's becoming a "foot race" to see who can make the faster processer, who can stuff the most RAM, or simply creating something that takes the place of something major like a better motherboard. If companies could monopolize, there would be advancement sure, but not at the speed that it would be going if they were in constant competition in the specified market. If a company goes under, it's simply because they could not make advances as fast as the larger companies did. They're basically just quitting the race because they've exhausted their "legs" of the company. This point relates to Darwin's "Survival of the fittest" in the fact that if you cannot keep up in the constantly changing technological industry, you will be eliminated.
10506939
3/6/2012 03:46:30 pm
As consumers we have to appreciate competition in the market. Competition is what keeps the quality of products up while keeping the price of those products down. We are always going to be looking for "the next best thing" so if your company isn't producing that "thing" you have to adapt or die out just like in biology. As consumers we have no obligation to any certain product so it is important that firms learn to become and stay competitive by adapting to new markets.
R10462776
3/6/2012 03:52:23 pm
Well honestly a new and better product will replace the old. Just like the CD did with the tape player and so on. Now as far as a tablet replacing a Desktop Computer, may be in the consumer market but highly unlikely in the business market where they need power over portability.
r10321572
3/6/2012 09:46:17 pm
The new turnover of each new technology is good for the health of the industry. If companies weren't striving to create better and newer technologies, where would we be today? Its a natural evolution, and an integral part in the fast paced worlds of technology
R10403506
3/7/2012 12:26:13 am
I believe that when companies like Apple start taling over with newer and better things all the time, it really isn't good for us. People lose jobs and profits because one company is taking all their business. I mean my iPod from 7th grade still works and I still use it. Do we really need new generations all the time?
R10468504
3/7/2012 12:55:04 pm
this is the way things have been happening since the beginning of time. we progressed from walking to cars. handwash to washing machines. from messenger boys to IM. it just happens. one day the android and iphone will fall to a new technology Comments are closed.
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