Destructive Creation

Destructive Creation
When innovation leads to destruction. Destructive creation was coined as a play on Joseph Schumpeter's famous term "creative destruction", which suggests that innovation leads to changes and economic growth. The term destructive creation was popularized during the financial crisis of 2007-2009, when large banks and insurance companies ceased to exist as a result of financial innovations.

Financial innovation is a different animal than other types of innovation. For example, when the PC was invented, it replaced the typewriter and increased efficiency; as a result, the economy profited. In other words, there was little downside to this innovation. However, some recent financial innovations could be said to me more destructive than productive. Derivatives, structured investment products and non-conventional mortgages have all fallen under public scrutiny in recent years as innovations that proved to bring more harm than good.


Investment dictionary. . 2012.

Игры ⚽ Нужно решить контрольную?

Look at other dictionaries:

  • creation myth — or cosmogony Symbolic narrative of the creation and organization of the world as understood in a particular tradition. Not all creation myths include a creator, though a supreme creator deity, existing from before creation, is very common. Myths… …   Universalium

  • Creation–evolution controversy — A satirical cartoon from 1882, parodying Darwin s theory of evolution, in response to the publication of The Formation of Vegetable Mould Through the Action of Worms. The creation–evolution controversy (also termed the creation vs. evolution… …   Wikipedia

  • Création de paires — Le terme création de paires renvoie à la création d un couple particule antiparticule à partir d un photon (ou d un autre boson de charge neutre) ou d’une particule chargée se déplaçant à une vitesse relativiste. Cette interaction fut découverte… …   Wikipédia en Français

  • destructive criticism — noun Criticism performed with the intention to harm someone, derogate and destroy someone’s creation, prestige, reputation and self esteem. Ant: constructive criticism …   Wiktionary

  • Brighter Than Creation's Dark — Infobox Album Name = Brighter Than Creation s Dark Type = studio Artist = Drive By Truckers Released = January 22, 2008 Label = New West Records Producer = David Barbe Reviews = *Allmusic Rating|4.5|5 [http://www.allmusic.com/cg/amg.dll?p=amg sql …   Wikipedia

  • Creative destruction — Crowd at New York s American Union Bank during a bank run early in the Great Depression. Marx argued that the devaluation of wealth during capitalism s periodic economic crises was an inevitable outcome of the processes of wealth creation.… …   Wikipedia

  • Soulfire — Supercbbox caption=Cover to Soulfire #0B by Michael Turner. comic color=background:#6D00AC publisher=Aspen MLT title=Soulfire format=limited series (10 issues) date=2004 2006 past current color=background:#6D00DD writers=Jeph Loeb, JT Krul… …   Wikipedia

  • literature — /lit euhr euh cheuhr, choor , li treuh /, n. 1. writings in which expression and form, in connection with ideas of permanent and universal interest, are characteristic or essential features, as poetry, novels, history, biography, and essays. 2.… …   Universalium

  • Hinduism — /hin dooh iz euhm/, n. the common religion of India, based upon the religion of the original Aryan settlers as expounded and evolved in the Vedas, the Upanishads, the Bhagavad Gita, etc., having an extremely diversified character with many… …   Universalium

  • international relations — a branch of political science dealing with the relations between nations. [1970 75] * * * Study of the relations of states with each other and with international organizations and certain subnational entities (e.g., bureaucracies and political… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”