Coronavirus Crisis and “Creative Destruction”

Describe

Joseph Schumpeter claims that when the times are ripe, innovation and the economic system will destroy the old one and creatives the new one. He calls it “Creative Destruction.” He insisted during the Great Depression that how capitalism moves forward, weeding out the inefficient and making way for new growth in a process initially described by Karl Marx as creative destruction.

Schumpeter always emphasized that Everything that is demoded is on a hiding to nothing. At that time, creative destruction will step in to introduce the new one.

An electric car, for instance, represents the new, and gasoline car represents the old. Global warming and gasoline price are a concern of young people who do not want to spend tens of thousands of dollars to travel. Therefore, the demand and supply of vehicle production are rising significantly. This means that the market changes its productions to adapt to the new demand in line with customers ’ demand; if some companies cannot adapt the new, then they have to be on hiding to nothing.

Coronavirus & Creative Destruction

Nowadays, we are facing unusual times that spread fear among people. Nobody wants to go out to take a walk, to eat in a restaurant, to drink a coffee in a park, to meet up with their friends. Fear conquers all of us and changes our habits and hobbies. All of us try to adapt to the “new normal.” Less spending time out is becoming our new normals. Most of us have started exercising at home, working from home, and ordering much delicious food from a fancy restaurant. Namely, we are doing leisure time activities at home.

Companies are trying to adapt to the new normal as well. They strengthen their online jobs to meet demands in online platforms. Many fancy restaurants sing in online delivery platforms to prove their costumers' willingness. The restaurants which could not adapt the new normal have to be on hiding to nothing. Creative destruction works and directs the market.  

Most of us have already learnt how to download an e-book or spend time with our beloved. We are also adapting the new normal; we have to actually, otherwise psychologically, we might be affected.

The virus will not disappear tomorrow, so it is time to review our habits and hobbies and harmonize them with our new lifestyle.