I’ve previously explained that “creative destruction” is the best and worst part of capitalism. This new video has more details.
I have three goals with this video.
First, I explain that trade destroys jobs. But protectionists won’t be happy with my message because I point out that all trade destroys jobs – whether we are looking at trade inside a country or trade that crosses national borders.
To be more specific, jobs are destroyed because of changes in trade that are caused by innovation. And I cite several examples.
- The invention and adoption of the light bulb destroying jobs in the candle-making industry.
- The invention and adoption of the automobile destroying jobs in the horse-and-buggy industry.
- The invention and adoption of the personal computer destroying jobs in the typewriter industry.
Second, I explain that this creative destruction boosts our living standards. Americans are far more prosperous today than we were 50 years ago or 100 years ago.
And I specifically point out in the video that this is true even for the descendants of candle makers, blacksmiths, and typewriter makers.
Third, I share data from the Bureau of Labor Statistics about massive annual job losses in the private sector that occurred in 2017 and 2018, but I also pointed out that an ever larger amount of new jobs were created in those two years.