No yin without the yang. No good without the bad. Forest fires are recently now occurring at high rates in many ecosystems that have not evolved with fire. In ecosystems like California, fires are necessary for some tree seeds to germinate. When forests burn down now, it does not regenerate like it use to because of invasive plants. We must wait a few hundred thousand years for the ecosystems to rebalance because of invasive species. In the past 100 years many trees have gone extinct from invasive disease/insects. I like the analogy about creative destruction. I think more connections can be made - like the economic system we are in is not the same as it use to be. The rate of destruction versus rate of regrowth. In what context does it occur?
I think the important part of creative destruction is the fact that the shock doesn't break the system, but just harms the weakest parts of it. Maybe we (or nature) have altered some ecosystems so that they're no longer just harmed in a positive way by fire but completely destroyed. In terms of the economy, I can touch on it in part II, but I think the equivalent analogy is a moderate recession vs. something like the severe depression (the economy is harmed in a positive way vs. almost totally destroyed). In other words, a time when the weakest firms go under allows for creative destruction, but a time when almost all firms go under might destroy the system.
No yin without the yang. No good without the bad. Forest fires are recently now occurring at high rates in many ecosystems that have not evolved with fire. In ecosystems like California, fires are necessary for some tree seeds to germinate. When forests burn down now, it does not regenerate like it use to because of invasive plants. We must wait a few hundred thousand years for the ecosystems to rebalance because of invasive species. In the past 100 years many trees have gone extinct from invasive disease/insects. I like the analogy about creative destruction. I think more connections can be made - like the economic system we are in is not the same as it use to be. The rate of destruction versus rate of regrowth. In what context does it occur?
I think the important part of creative destruction is the fact that the shock doesn't break the system, but just harms the weakest parts of it. Maybe we (or nature) have altered some ecosystems so that they're no longer just harmed in a positive way by fire but completely destroyed. In terms of the economy, I can touch on it in part II, but I think the equivalent analogy is a moderate recession vs. something like the severe depression (the economy is harmed in a positive way vs. almost totally destroyed). In other words, a time when the weakest firms go under allows for creative destruction, but a time when almost all firms go under might destroy the system.