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Creative Destruction Can Refuel America’s Economy

As the stock market rocks and rolls and unemployment skyrockets, we must begin to ponder our economic foray into the 21st Century.  America, and every other country, have all had stagnant periods of creativity and business growth.  Post-Covid-19 will be no different as a capitalist system has consistent bull and bear runs.  It may be our time to think about turning our many ideas into active business proposals for the returning economy.  As Pablo Picasso said, “Without great solitude, no serious work is possible”.  Solitude allows us to bring new creativity to the field since we finally have time to think about creating a better future. 

Creative destruction sounds like something from a video game until we think for a minute about it.  All creativity is brought through the chaos of reactions with thoughts and sometimes chemicals.  We won’t leave the scientists out.  According to Alan Greenspan’s meticulous work he believes the American economy has been stagnating for over 40 years.  Basically, since Reagan was in office, our GDP increased while the wealth gap widened.  Fewer people in the middle and lower classes were creating new businesses, specifically manufacturing.  American’s took their new inventions to be manufactured in foreign countries for lower labor costs.  These companies would normally have their headquarters in America but that only provided a few jobs while the majority of jobs went to non-American workers.  This is a perfect time to unleash America’s creative destruction to refuel our stagnant economy.

Politicians have hampered many new inventions by allowing companies to stop new technologies from formulating new breakthroughs.  We have had our fair share of Luddites lobbying Congress to stop competition in their respective field.  A good example is pharmaceutical companies can hold patents far longer if they can have a Congressperson use a bill to extend their patent.  The time is ripe for politicians to step aside from their lobbyists and produce higher funding for new businesses.  Unfortunately, nearly a quarter of small businesses will not rebound from the Covid-19 pandemic.  That means there is room for new ideas and funding.  

New York is a leading center of creatively destructive innovation.  In 2020 they had 50 new startups based on AI and manufacturing. New startup companies are provided with grants from local to national funds.  These funds come in the form of grants as well allowing less economic pressure on a business to become an immediate booming success. Now that we are all at home with time on our hands we can think about what’s really next in our lives.  What are our new beginnings as America’s economy will rise through creatively destructive stagnation?  As Millennials and Gen Zers start their domination of the economy and consumerism, what businesses would serve them the best?  Don’t worry about having enough time to start a business either as more people will be teleworking after Covid-19 than ever before.  Why would businesses pay rent and insurance if it can be done on your dime? 

Our political leaders need to begin focusing on how creative destruction can be revamped to fit into the 21st Century.  Currently, America is a service economy but how many more services could we possibly need?  Really, there’s an app for just about everything.  Politicians need to focus on what manufacturing in the 21st Century will be like and include that in post-Covid-19 business funding.  America needs a stimulus to our economy since we have stagnated since the mid-’70s. The Small Business Association needs to produce higher funding for manufacturing startups to ensure a wealth of consumerism to balance our 21st Century capitalist budget.  The next bills from Congress should be based on future projections of our economy not just stopgap funding checks.

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