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Gale of Creative Destruction• Creative destruction sometimes known as Schumpeter's gale, is a concept in economics which since the 1950s has become most readily identified with the Austrian economist Joseph Schumpeter who derived it from the work of Karl Marx and popularized it as a theory of economic innovation and the business cycle.
• It can be described as the dismantling of long-standing practices in order to make way for innovation.
• For e.g. Henry Ford's assembly line revolutionized manufacturing industries, but forced many laborers out of work. That is creative destruction at work.
Biographical Solutions to Structural Problems• A charismatic leader mesmerises the electorate, strikes an emotional chord and blurs the distinction between the leader and the led. This takes the focus away from institutions/structures to personalities.
• But it is very difficult for a government to offer biographical solutions to structural problems. Democracy mustn’t be reduced to the biography of a leader.
Management by Algorithm• Amazon’s system can automatically fire its warehouse workers. Similarly, Uber drivers have complained of “management by algorithm.”
• This is not the first “fired by a computer” case but, as automation marches on, these stories are likely to become a lot more common.