Auto Innovation

Saying, “I believe the people who invented the auto cannot abandon it,” President Obama supported the bailout of General Motors. Economist Joseph Schumpeter would have been horrified. The man who explained “creative destruction,” Schumpeter believed that economic growth depends on…

Creatively Destroying Pontiac

At some point, sooner or later, people get tired of black. During the 1920s, Henry Ford realized that the Model T, so very practical and affordable because it only came in black, needed some vitality. What forced him to recognize…

Creative Destruction

Reading Ken Auletta’s recent New Yorker article on the iPad and the Kindle, I first thought of “the razor or the blade.” While Amazon loses money on books in order to sell Kindles, razors were precisely the opposite. Get a cheap…

The Significance of the Frisbee

Last week, just after listening to the Schumpeter lecture from Dr. Timothy Taylor in a (very good) Teaching Company course on the history of economic thought, I read in the N.Y. Times that the inventor of the Frisbee had died.…