Economist Joseph Schumpeter called creative destruction—the process by which the economy grows via innovation that disrupts incumbent businesses—the “essential fact about capitalism.” But though there are many examples of creative disruption that spring readily to mind, the phenomenon may be less pervasive than it appears. A group of researchers including Chicago Booth’s Chang-Tai Hsieh used employment data to measure just how powerful creative destruction’s effect on the economy is; they find that it accounts for as little as 13% of productivity growth over a 10-year period.
Investment manager Jim Chanos discusses short selling’s role in financial markets.
Capitalisn’t: Is Short Selling Dead?
The problem is larger than previously calculated.
Savvy Refinancers Reinforce Mortgage-Market Inequality
Economists consider the effects of holding platforms more responsible for their users’ content.
How Would Increasing the Liability of Online Platforms Change the Internet?Your Privacy
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