The visible hand in economics

Creative destruction

Posted on: July 31, 2007

I’ve always had a soft spot for the idea of creative destruction, even though my understanding of the it is well below par.

I found the following article interesting, in the way it used the idea of job creation and destruction to describe the process of changing unemployment.  It gives us a good idea about the massive flows associated with input changes in the labour market.

Using this concept, it describes how the composition of employment in NZ is changing, with more highly paid, high value jobs being created, at the expensive of low value, low skill jobs.  In my opinion, and the opinion of the article, this is a good thing.  What do you think?

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