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Definition of '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.
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Investopedia explains 'Destructive Creation'
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.
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Search results for 'Destructive Creation'
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http://stocks.investopedia.com/stock-analysis/2009/Are-You-A-Share-Holder-Or-A-Share-Flipper-BRK.A-BRK.B-IBM-GS-GOOG-KO0915.aspx
... short-term goals fly in the face of long-term value creation and can ... termism Aspen
Institute sees three primary solutions to overcome the destructive nature of ...
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http://www.investopedia.com/articles/forex/11/why-you-need-a-forex-trading-journal.asp
... help it provides in forcing you to change your habits from destructive to constructive. ...
as measured by the weakening GDP data and the poor job creation numbers ...
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