theodore M I R A L D I.
Creative destruction (German: schöpferische Zerstörung), sometimes known as Schumpeter's gale, is a concept in economics which since the 1950s has become most readily identified withthe AustrianAmerican economist
Joseph Schumpeter who derived it from the work of Karl Marx and popularized it as a theory of economic innovation and the business cycle.
According to Schumpeter, the "gale of creative destruction" describes the "process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one". In Marxist economic theory the concept refers more broadly to the linked processes of the accumulation and annihilation of wealth under capitalism. (Wikipedia.org)
This economic methodology has been successful in Western Culture since the Industrial Revolution. Unfortunately, the nexus of success requires creating something new when something old either no longer works, or its purpose has been outdated.
"Creative destruction refers to the incessant product and process innovation mechanism by which new production units replace outdated ones. This restructuring process permeates major aspects of macroeconomic performance, not only long-run growth but also economic fluctuations, structural adjustment and the functioning of factor markets. Over the long run, the process of creative destruction accounts for over 50 per cent of productivity growth. At business cycle frequency, restructuring typically declines during recessions, and this add a significant cost to downturns. Obstacles to the process of creative destruction can have severe short- and long-run macroeconomic consequences." (Ricardo J. Caballero)
When Barack Obama took office in 2008, he promised to fundamentally transform our nation through the redistribution of wealth, and the changed relationship between labor and reward. These are fundamental principles of Marxism, and clarified by Joseph Schrumpeter.
The problem with Obama's application of this theory, is that the loss of jobs greatly outpaced the creation of new jobs, and to this day is unbalanced. My question is why would Obama, the Great Emancipator of social divide, didn't understand that the balance necessary for his policies to be successful needed to adhere to job Creation, and less Destruction through Spending and Regulation.
What Barack Obama did is weaken the nation to a point of actual Destruction of its ability to protect itself from inside and outside forces that believe the United States is better off as a weak nation. This promotes nefarious interests by bad actors who have been aiding and abetting Obama's master plan.
There have been numerous failed attempts to integrate social policy without the support of a capitalist style economy, which is robust enough to support large scale entitlements for its population. There are many cases in recent history where under-developed countries have had partial success, only to be thwarted by Corruption and Mismanagement of National Resources. Best case example: Venezuela.
The Obama Doctrine is based on failed theoretical dogma, popularized at the time that Obama attended Harvard, coupled with his experience as a community organizer. This Communist/Socialist paradigm has been a stalwart of the Democrat Party for decades. Unfortunately, when fiscal responsibility becomes an active variable, policies based on Creative/Destruction always fall far short of desired results.
Obama has placed the importance on optics and not results, which has greatly contributed the targeting certain segments of the population to overcome a weakened economy. This exact model has applied to City, State and now Federal Government process. Over-taxing the Middle-Class either makes them flee, or fail. This eventually creates a larger tax burden on fewer tax paying individuals. This same model applies to business. Obama has slowed down growth by implementing crippling regulations on capital growth. Companies move or are destroyed by bad governmental policies. Many, as we have seen, leave our country to avoid over taxation.
Again ask yourself, Why would Obama hamper Growth through Regulation? What has doubling the National Debt accomplished for this nation, or its citizens?
No Bridges, Railways, Airports, Energy, or Roads. No major Infrastructure improvements at all.
I firmly believe that the rest of us have gotten exactly what the Democrats wanted...Failure!