Tag Archives: economic depression
The Creative Process of Government Destruction
According to Schumpeter, the depression stage is both useful and creative. It brings the economy into equilibrium through forced adjustments. The level setting during the depression then encourages new innovations that take shape in the next stage of recovery. This process, where new and innovative companies destroy the value of established companies, is what Schumpeter called creative destruction. Continue reading
Death to Zombies
Rising interest rates, no doubt, bring death to zombies. By zombies, we’re referring to those companies in the second camp that would have died long ago, if not for the sustenance of artificially suppressed cheap credit. Continue reading
Posted in Inflation, MN Gordon
Tagged consumer price index, default, economic depression, federal reserve, interest rate
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