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The Fraser Institute, Essential Schumpeter: Creative Destruction

Essential Schumpeter: Creative Destruction

Welcome to the essential ideas of Joseph Schumpeter.

The phrase “creative destruction” was popularized by economist Joseph

Schumpeter to describe the entrepreneurial process. What Schumpeter

observed is that entrepreneurship simultaneously creates something new...

while destroying something old. Consider this example: in the late 1800s the horse

and buggy was the most widespread form of transportation and it included a vast

array of businesses and workers: people who raised horses... leather shops that

made the harnesses and equipment... blacksmiths who forged and repaired the

metal fittings, and so on. One day Jane, an entrepreneur, saw the vast potential for

profit if a horse could be replaced by a machine.

Jane created a prototype that attracted some attention. At first these

"automobiles" were an interesting novelty that attracted a few customers. But Jane

made enough profit to pay her workers and other costs – the first sign she was

onto something. As Jane continued to innovate, more people wanted to buy her

automobiles. With the additional revenue, Jane hired more workers to speed up

production and moved into a larger space, which helped her lower prices, making

the automobile accessible to more people. Soon, other entrepreneurs entered the

automobile industry and added further innovations, This eventually lowered the price,

and demand for automobiles increased… while demand for horse-and-buggies declined.

This transfer of resources from the horse and buggy

industry to the automobile industry had far reaching implications for the entire economy.

Stables that raised horses began laying off staff… leather shops switched

switched to making leather car seats… and blacksmiths started fashioning parts for automobiles.

Eventually many of the old industry's workers found employment in

the new industry, or elsewhere in the growing economy. One of Schumpeter's

greatest contributions to economics was his observation that the destructive

element to entrepreneurship was necessary to reap the rewards of new,

creative entrepreneurship and innovation. For more information on Joseph

Schumpeter, visit EssentialSchumpeter.org and to learn about more essential

scholars, visit EssentialScholars.org

and to learn about more essential

scholars visit essential scholars org

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Essential Schumpeter: Creative Destruction |Joseph Schumpeter|| Wesentlicher Schumpeter: Schöpferische Zerstörung Schumpeter esencial: Destrucción creativa L'essentiel de Schumpeter : Destruction créatrice エッセンシャル・シュンペーター創造的破壊 필수 슘페터: 창조적 파괴 Esminis Schumpeteris: Kūrybinė destrukcija Essential Schumpeter: Twórcza destrukcja O essencial de Schumpeter: Destruição Criativa Эссенциальный Шумпетер: Созидательное разрушение Temel Schumpeter: Yaratıcı Yıkım Есенціальний Шумпетер: Творче руйнування 熊彼特精要:创造性破坏 熊彼特精要:創造性破壞

Welcome to the essential ideas of Joseph Schumpeter.

The phrase “creative destruction” was popularized by economist Joseph ||креативное|||||| |||destruction|||||Joseph Schumpeter A expressão “destruição criativa” foi popularizada pelo economista Joseph

Schumpeter to describe the entrepreneurial process. What Schumpeter ||||предпринимательский процесс||| ||||przedsiębiorczy||| Schumpeter para descrever o processo empreendedor. O que Schumpeter

observed is that entrepreneurship simultaneously creates something new... 观察到||||同时||| pastebėta||||vienu metu||| ||||simultaneamente||| zaobserwowano|||przedsiębiorc|||| наблюдаемое||||одновременно||| Zaobserwowano, że przedsiębiorczość jednocześnie tworzy coś nowego... observado é que o empreendedorismo simultaneamente cria algo novo...

while destroying something old. Consider this example: in the late 1800s the horse ||||apsvarstykite|||||||| |niszczeniu|||||||||||koń enquanto destrói algo velho. Considere este exemplo: no final do século XIX, o cavalo

and buggy was the most widespread form of transportation and it included a vast |||||широко распространённая|||||||| |carroça||||mais comum||||||incluía|| |马车||||||||||||广阔的 |vežimėlis||||||||||||platus |バギー|||||||||||a|広大な |||||najbardziej powszech|||transportu|||||ogromną そしてバギーは最も広く普及した交通手段であり、広範な i buggy były najbardziej rozpowszechnioną formą transportu i obejmowały rozległy e o buggy era o meio de transporte mais difundido e incluía uma vasta

array of businesses and workers: people who raised horses... leather shops that массив|||||||выращивали||кожаные магазины|| ||||workers||||||| um conjunto||||||||||| |||||||||皮革|| rinkinys||||||||||| |||||||||革|| ||||pracownicy|||hodowali||skórzane|| ビジネスと労働者の集まりを含んでいました:馬を育てる人々... variedade de negócios e trabalhadores: pessoas que criam cavalos... lojas de couro que

made the harnesses and equipment... blacksmiths who forged and repaired the ||ремни|||кузнецы||ковали||ремонтировали| |||||||forjaram||| ||马具|||铁匠们||锻造||| ||diržus|||kalviai||kalė||| ||ハーネス|||鍛冶屋||鍛造した||| |||||||kuźnicy||naprawiali| ハーネスや用具を作る皮革店...鍛冶屋が鍛造し修理しました faziam os arreios e equipamentos... ferreiros que forjavam e consertavam виготовляли збрую та спорядження... ковалі, які кували та ремонтували

metal fittings, and so on. One day Jane, an entrepreneur, saw the vast potential for |фурнитура||||||||||||| |ferragens||||||||||||| |金属配件||||||||企业家||||| |fittings|||||||||||didžiulį|| |金具||||||||||||| metalowe|okucia metalowe||||||||||||| 金属金具など。ある日、起業家のジェーンは、その大きな潜在能力を見ました。 acessórios de metal, e assim por diante. Um dia, Jane, uma empresária, viu o vasto potencial de

profit if a horse could be replaced by a machine. ||||||substituted||| ||||||zastąpiona||| 馬が機械に置き換えられるならば利益が出る。 lucro se um cavalo pudesse ser substituído por uma máquina.

Jane created a prototype that attracted some attention. At first these |||原型||||||| |||||pritraukė||||| |||prototipo||||||| |stworzyła||prototyp||||||| |||||привлекло||внимание||| ジェーンは注目を集めるプロトタイプを作成しました。最初はこれらの Jane stworzyła prototyp, który przyciągnął uwagę. Początkowo te Jane criou um protótipo que atraiu alguma atenção. A princípio esses

"automobiles" were an interesting novelty that attracted a few customers. But Jane 汽车||||新奇事物||||||| ||||novidade||||||| ||||新しさ||||||| samochody||||nowość||||||| автомобили||||новинка||||||| "自動車"は興味深い新奇性であり、数人の顧客を引き付けました。しかし、ジェーンは "samochody" były interesującą nowością, która przyciągnęła kilku klientów, ale Jane "automóveis" eram uma novidade interessante que atraiu alguns clientes. Mas Jane

made enough profit to pay her workers and other costs – the first sign she was ||||||||||その|||| |||||||||kosztów|||znak|| 彼女の労働者やその他のコストを支払うのに十分な利益を上げた - これは彼女が何かを掴んでいる最初の兆しだった。 osiągnęła wystarczający zysk, aby opłacić pracowników i inne koszty - pierwszy znak, że była teve lucro suficiente para pagar seus trabalhadores e outros custos - o primeiro sinal de que ela estava

onto something. As Jane continued to innovate, more people wanted to buy her ||||||创新|||||| ||||||kurti|||||| ||||||革新する|||||| ||||kontynuowała|||||||| ジェーンは革新を続けるにつれて、彼女の自動車を買いたいと思う人が増えた。 em algo. Como Jane continuou a inovar, mais pessoas queriam comprá-la на щось. Оскільки Джейн продовжувала впроваджувати інновації, все більше людей хотіли купувати її

automobiles. With the additional revenue, Jane hired more workers to speed up |||дополнительным|доход||наняла|больше|||| ||||pajamų||pasamdė||||| |||dodatkowymi|przychody||zatrudniła||||| ||||收入||||||| 追加の収益で、ジェーンは作業を加速するためにより多くの労働者を雇った。 Dzięki dodatkowym przychodom Jane zatrudniła więcej pracowników, aby przyspieszyć rozwój firmy. automóveis. Com a receita adicional, Jane contratou mais funcionários para acelerar

production and moved into a larger space, which helped her lower prices, making 生产|||||||||||| производство|||||большее||||||| produkcji i przeniosła się do większej przestrzeni, co pomogło jej obniżyć ceny, dzięki czemu produção e mudou-se para um espaço maior, o que a ajudou a baixar os preços, tornando

the automobile accessible to more people. Soon, other entrepreneurs entered the ||доступным|||||||| ||prieinamas|||||||| |automóvel||||||||| |自動車||||||||| |samochód|dostępny|||||||weszli w| o automóvel acessível a mais pessoas. Logo, outros empresários entraram no

automobile industry and added further innovations, This eventually lowered the price, 自動車産業はさらなる革新を加え、これが最終的には価格を下げました。 przemysł motoryzacyjny i dodał dalsze innowacje, co ostatecznie obniżyło indústria automobilística e acrescentou mais inovações, Isso acabou diminuindo o

and demand for automobiles increased… while demand for horse-and-buggies declined. ||||||||馬||馬車| ||||||||||carroças| 自動車の需要が増加する一方で、馬車の需要は減少しました。 cena, a popyt na samochody wzrósł... podczas gdy popyt na konie i inne pojazdy wzrósł. preço e a demanda por automóveis aumentou... enquanto a demanda por cavalos e

This transfer of resources from the horse and buggy 馬車からの資源の移転 buggies recusou. Essa transferência de recursos do cavalo e da charrete

industry to the automobile industry had far reaching implications for the entire economy. |||||||amplas||||| 馬車産業から自動車産業への資源の移転は、経済全体に広範な影響を与えました。 do przemysłu samochodowego miało daleko idące implikacje dla całej branży motoryzacyjnej. indústria para a indústria automobilística teve implicações de longo alcance para todo o

Stables that raised horses began laying off staff… leather shops switched 厩舎|||||||||| Estábulos|||||||||| 馬を飼育していた厩舎はスタッフを解雇し始めた…革製品店は切り替えた Stajnie, w których hodowano konie, zaczęły zwalniać pracowników... sklepy skórzane zmieniły swoje siedziby. economia.Estábulos que criavam cavalos começaram a demitir funcionários... lojas de couro trocadas

switched to making leather car seats… and blacksmiths started fashioning parts for automobiles. |||||||||fabricando||| 革の車のシートを作ることに… そして鍛冶屋は自動車の部品を作り始めた passaram a fazer assentos de carro de couro... e os ferreiros começaram a fabricar peças para переключилися на виготовлення шкіряних автомобільних сидінь... а ковалі почали виготовляти деталі для

Eventually many of the old industry's workers found employment in |||||産業の|||| |||||indústria|||| 最終的に、古い産業の多くの労働者は雇用を見つけた automóveis. Eventualmente, muitos dos trabalhadores da velha indústria encontraram emprego em

the new industry, or elsewhere in the growing economy. One of Schumpeter's ||||其他地方|||||||熊彼特的 ||||他の場所|||||||シュンペーターの ||||gdzie indziej||||||| ||||в другом месте||||||| Jedną z tez Schumpetera jest to, że w nowym przemyśle lub gdzie indziej w rozwijającej się gospodarce a nova indústria, ou em outro lugar na economia em crescimento. Um dos Schumpeter

greatest contributions to economics was his observation that the destructive ||||||observação|||destrutiva ||||||Beobachtung||| |贡献||||||||破坏性的 |indėlis|||||steigimu|||naikinantis |貢献||||||||破壊的な |wkłady|||||obserwacja|||destrukcyjna maiores contribuições para a economia foi sua observação de que o poder destrutivo найбільшим внеском в економіку було його спостереження про те, що руйнівні

element to entrepreneurship was necessary to reap the rewards of new, ||||||||回报|| ||||||skinti||naudą|| ||||||colher|||| ||||||得る|||| element w przedsiębiorczo||przedsiębiorc||||zbierać||nagrody|| 新しいものの報酬を得るためには、起業家精神が必要でした。 Element przedsiębiorczości był niezbędny, aby czerpać korzyści z nowości, elemento para o empreendedorismo era necessário para colher os frutos do novo,

creative entrepreneurship and innovation. For more information on Joseph |przedsiębiorc||||||| 創造的な起業家精神と革新。ジョセフ・シュンペーターに関する詳細は、 empreendedorismo criativo e inovação. Para mais informações sobre José

Schumpeter, visit EssentialSchumpeter.org and to learn about more essential EssentialSchumpeter.org を訪れて、さらに重要なことについて学びましょう。

scholars, visit EssentialScholars.org estudiosos, visite EssentialScholars.org

and to learn about more essential

scholars visit essential scholars org estudiosos visitam a organização de acadêmicos essenciais