Question

In: Economics

Economist Joseph Schumpeter once argued that people are too often lulled into an unproductively comfortable state...

Economist Joseph Schumpeter once argued that people are too often lulled into an unproductively comfortable state when they have continuous employment. His conclusion was that recessions (more accurately, depressions, in his era) were good because they forced people to be creative and entrepreneurial. He labeled this “creative destruction.” Do you agree with the premise of his argument? Do you agree with his conclusion?

Solutions

Expert Solution

Yes I do agree with the premises of The Economist Joseph schumpeter's argument. It is often called as creative block, when paper are continuously working without any break they tend to get lazy and an interested towards their work. It doesn't matter if someone is doing what kind of work.

Hence in Big Industries as well leisure time is considered as productive breaks which increases efficiency of workers in the next few hours of the work. The brake system The Economist is talking about is is similar to this condition of taking leisure time in between work.

Although recession period days not a great period for the economy but The Economist is saying that this recession period is necessary for giving a break to continuous working system of of employers and employees which would help them to to take a break and be more creative towards the work and give more efficiency. Hence he called it as creative destruction.

Although I don't agree with the conclusion 100%. Calling the recession period, more specifically depression period in his era, as a constructive destruction, was not a very good idea. Because the destruction caused by the depression period was way more than the constructive it could be.

Many workers, rather than being creative in this recession period begin stressful because of loss of their jobs and not able to survive in the economy. Only a few class of people were part of this constructive destruction other than those were all the part of the destruction while in the period of depression.

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

Economist Joseph Schumpeter argues that people are often lulled into an unproductively comfortable state when there...
Economist Joseph Schumpeter argues that people are often lulled into an unproductively comfortable state when there is continuous employment. His conclusion was that recessions were good because they force people to be creative and entrepreneurial. His term for this was “creative destruction”. Do you agree with his premise and/or conclusion?
Joseph Aloïs Schumpeter  (8 February 1883 – 8 January 1950) was an Austrian political economist. He was...
Joseph Aloïs Schumpeter  (8 February 1883 – 8 January 1950) was an Austrian political economist. He was born in Moravia, and briefly served as Finance Minister of German-Austria in 1919. In 1932, he became a professor at Harvard University where he remained until the end of his career. Schumpeter was one of the most influential economists of the 20th century, He popularized the term "creative destruction" in economics and Schumpeter was probably the first scholar to theorize about entrepreneurship. Creative Destruction...
It has been argued that business has too much power that, once exercised, even in a...
It has been argued that business has too much power that, once exercised, even in a responsible manner, distorts the balance of political power in the country. Discuss both sides of this issue. Where do you stand? Explain your position and the reasoning behind it.
It is often argued that the best people to detect crime are those who know how...
It is often argued that the best people to detect crime are those who know how to commit the crime. With this in mind, how would you commit the perfect fraud? You can use your organization or a “fictitious” organization. What weaknesses would you look to take advantage of? How would you make sure that your fraud was not detected? If you had to identify one item that would be the greatest deterrent to you – what would that be?...
People think that insurance premiums are often too high and not worth the money, however, when...
People think that insurance premiums are often too high and not worth the money, however, when an accident occurs, even something as serious as death, a car accident, a house fire, etc. people sometimes lose everything. Discuss with your classmates how you feel about car, life and property insurance that you learned about in this unit. Have you had a situation where you or someone you know did not have insurance and wish they had? Or perhaps you were harmed...
People think that insurance premiums are often too high and not worth the money, however, when...
People think that insurance premiums are often too high and not worth the money, however, when an accident occurs, even something as serious as death, a car accident, a house fire, etc. people sometimes lose everything. Discuss with your classmates how you feel about car, life and property insurance that you learned about in this unit. Have you had a situation where you or someone you know did not have insurance and wish they had? Or perhaps you were harmed...
An economist wondered if people who go grocery shopping on weekdays go more or less often...
An economist wondered if people who go grocery shopping on weekdays go more or less often on Fridays than any other day. She figured that if it were truly random, 20% of these shoppers would go grocery shopping on Fridays. She randomly sampled 75 consumers who go grocery shopping on weekdays and asked them on which day they shop most frequently. Of those sampled, 24 indicated that they shop on Fridays more often than other days. The economist conducts a...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT