{"id":56042,"date":"2020-12-17T09:26:55","date_gmt":"2020-12-17T14:26:55","guid":{"rendered":"https:\/\/olduvai.ca\/?p=56042"},"modified":"2020-12-17T09:28:45","modified_gmt":"2020-12-17T14:28:45","slug":"survival-of-the-biggest","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=56042","title":{"rendered":"Survival of the Biggest"},"content":{"rendered":"<figure class=\"u-shadow-v25 g-mb-30\"><img decoding=\"async\" class=\"img-fluid w-100\" src=\"https:\/\/ggc-mauldin-images.s3.amazonaws.com\/uploads\/newsletters\/Lead_20201211_TFTF.jpg\" alt=\"Survival of the Biggest\" \/><\/figure>\n<header class=\"g-mb-30\">\n<h3 class=\"h1 g-mb-15\"><a href=\"https:\/\/www.mauldineconomics.com\/frontlinethoughts\/survival-of-the-biggest\">Survival of the Biggest<\/a><\/h3>\n<hr class=\"g-brd-gray-light-v4 g-my-15\" \/>\n<\/header>\n<div class=\"body\">\n<div class=\"links\">\n<p><a href=\"https:\/\/www.mauldineconomics.com\/frontlinethoughts\/survival-of-the-biggest#small\">Small Business Slaughter<\/a><br \/>\n<a href=\"https:\/\/www.mauldineconomics.com\/frontlinethoughts\/survival-of-the-biggest#triumph\">Triumph of Bigness<\/a><br \/>\n<a href=\"https:\/\/www.mauldineconomics.com\/frontlinethoughts\/survival-of-the-biggest#zombie\">Zombie Companies<\/a><br \/>\n<a href=\"https:\/\/www.mauldineconomics.com\/frontlinethoughts\/survival-of-the-biggest#startups\">Small Business Startups Are Increasing<\/a><br \/>\n<a href=\"https:\/\/www.mauldineconomics.com\/frontlinethoughts\/survival-of-the-biggest#final\">Final Thoughts and Valuations<\/a><\/p>\n<\/div>\n<p>The essential point to grasp is that in dealing with capitalism we are dealing with an evolutionary process\u2026 At the heart of capitalism is creative destruction.<\/p>\n<p>\u2026Situations emerge in the process of creative destruction in which many firms may have to perish that nevertheless would be able to live on vigorously and usefully if they could weather a particular storm.<\/p>\n<p><em>\u2014Joseph A. Schumpeter<\/em><\/p>\n<p>The most important feature of an information economy, in which information is defined as surprise, is the overthrow, not the attainment, of equilibrium. The science that we have come to know as information theory establishes the supremacy of the entrepreneur because it appreciates the powerful connection between destruction and what Schumpeter described as &#8220;creative destruction,&#8221; between chaos and creativity.<\/p>\n<p><em>\u2014George Gilder<\/em><\/p>\n<p>In its purest form, capitalism is an evolutionary process. Businesses that best adapt to changing conditions survive and grow. Typically, that means offering a product or service superior to current ones, or giving consumers more choices. Weaker or poorly managed businesses that don\u2019t adapt to the new situation wither and eventually die. That\u2019s not always pleasant but it\u2019s how nature works. Joseph Schumpeter coined the term \u201ccreative destruction\u201d to describe the process. It is not pleasant when you are on the destruction end, but the creative side can bring innumerable joys and sometimes even wealth.<\/p>\n<p>The difference, however, is we don\u2019t have capitalism in its purest form, or anywhere close. It has been tweaked, modified, corrupted and\/or regulated into something else, the particulars of which vary. The common thread is that survival depends not only on impersonal nature, but on other non-random forces that can be manipulated. Governments can and often do create barriers to entry, protecting favored constituencies and groups from competition.<\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Survival of the Biggest Small Business Slaughter Triumph of Bigness Zombie Companies Small Business Startups Are Increasing Final Thoughts and Valuations The essential point to grasp is that in dealing with capitalism we are dealing with an evolutionary process\u2026 At the heart of capitalism is creative destruction. \u2026Situations emerge in the process of creative destruction [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[111,6496,8226,7758],"class_list":["post-56042","post","type-post","status-publish","format-standard","hentry","category-economics","tag-capitalism","tag-creative-destruction","tag-john-mauldin","tag-mauldin-economics"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/56042","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=56042"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/56042\/revisions"}],"predecessor-version":[{"id":56044,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/56042\/revisions\/56044"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=56042"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=56042"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=56042"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}