ITNR #24 — Watching Creative Destruction Play Out in Real Time

I’ve posted Entry #24 to my weekly Investing: The New Rules column at the Death by 1,000 Papercuts site. It’s titled Watching Creative Destruction Play Out in Real Time.

Juicy Excerpt: When the automobile first came on the scene, The National Buggywhip Manufacturers Association did not like the innovation one little bit. Cars were dangerous. They were not natural. They were a fad. They were too complicated. You can’t feed sugar to a car. On and on. It was the same mumbo-jumbo we are hearing today about Valuation-Informed Indexing.

Government-controlled economies don’t work because elected officials don’t dare make unpopular decisions. Free-market economies have a secret weapon called “Creative Destruction.” Creative Destruction is always unpopular. We all want to be nice guys. We all want to avoid rocking the boat. We all want to let the old ways continue a little longer. Creative Destruction forces us to move to a better place even when we don’t particularly like doing what it takes to get there.