COVID-19 may be the catalyst — not the cause — of a painful but useful economic transformation: Don Pittis

Article Link: https://www.cbc.ca/news/business/coronavirus-economic-change-1.5581084

Discussion posted by: Arye ben-Shaoul

Retailers go broke, property and oil fall but maybe the economic pain will speed beneficial changes… As the CMHC worries Canadian real estate prices will crash by as much as 18 per cent, the oil industry struggles to recover from negative pricing and unemployment rises toward Depression levels, it is hard to see the bright side. But according to the theory of creative destruction derived by German economist Joseph Schumpeter in 1942 from ideas proposed by Karl Marx, economic and technological progress demands that businesses must die and industries and paradigms must be swept away to make room for new ones. Canadian economist Peter Howitt, recent winner of the Frontiers of Knowledge Award for his work proving Schumpeter’s principles in the real world, said that while the creative destruction process is happening all the time