December 24, 2021
Dinosaurs once roamed the earth. They were incapable of adapting to a new environment, and were wiped out by a meteor and subsequent climate change. In a similar vein, companies that don’t adapt, die. The corporate landscape is littered with the ruins of companies that were unable to embrace creative destruction. According to economist Joseph Schumpeter, the “gale of creative destruction” describes the “process of industrial mutation that continuously revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one.
Adapting involves change, and most people resist change as if it were a plague. They engage in denial, and refuse to accept a harsh reality. The belief that all will be well if you just give it time is a sure sign of denial. Another sure sign is the belief that conditions have not changed, or at least have not changed enough to matter. Denial is a necessary stage in grieving the loss of a loved one. It has no place in the running of an enterprise.
The progressive left believes that we need to adapt to new realities, and engage in creative destruction. The most obvious example are the challenges presented by climate change, and the right’s abject denial of its very existence. The left believes we we need to develop clean alternatives to fossil fuels. We need to rethink the energy paradigm. Republicans, the corporations that rely on fossil fuels, and Joe Manchin are holding up much needed climate change mitigation legislation and funds in the mistaken belief that everything is fine, and they are not part of the problem. Ask Tyrannosaurus Rex and his friends how that turned out for them.