Chapter eight discusses the effect that government regulations can have on the future of an economic system and a community as a whole. Many firms and individuals who are threatened by bankruptcy and layoffs due to new, competing technology and ideas seek help from politicians. But, as Wheelan states, "There is a crucial distinction, however, between using the political process to build a safety net for those harmed by creative destruction and using the political process to stop that creative destruction in the first place" (Wheelan 184-185).
American society advances when the government refuses to protect "old structures" in a way that will inhibit "new structures" from emerging. In the fifteenth century, China was more advanced than the United States in technology, engineering, exploration, and farming. However, "the Chinese elites valued stability more than progress" (Wheelan 186). As a result, America experienced the Industrial Revolution while China banned further exploration and societal changes.
Decisions involving development made by political leaders pose long-term consequences for the future of the nation. While the government can be helpful in offering aid or compensation for those who lose their jobs due to advancement, it can do more harm than good if the government listens to people's pleas to stand in the way of innovation.
No comments:
Post a Comment