C11 of The Great Disruption - Austrian Economist

Point One - If you believe that The Great Disruption will really happen and that a "one-degree war plan" is necessary then you should do something - should get started with the war.

Point Two - According to the Austrian economist Joesph Schumpeter, markets are engines of creative destruction - "a process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one."

Although Gilding compares The Market (my emphasis) to a rain forest he doesn't extend the metaphor to explicitly say that markets are instruments of economic natural selection. Therefore, making the analogy for him - companies, like living organisms, change in response to changes in the environments in which they function.


In natural systems changes are due to random DNA mutations - which either provide advantage or disadvantage in constantly changing environments. If an advantage is forthcoming the organism survives to pass on its DNA; otherwise the organism fails and becomes an evolutionary dead end.

In economic systems changes are made more-or-less consciously by business people in response to changes in The Market - the business environment. When changes work, the business makes money - it prospers. When changes don't work, the business loses money - it fails.

Point Three - Given Point Two, the way to change business and fight the one-degree war is to change the environment in which business operates. Change The Market and at least some businesses will implement the changes necessary to make money. Businesses that adapt will prosper, those that don't will fail.

In the case of the one-degree war, the aspect of The Market most subject to change and control is the regulatory environment. Change that in ways that favor the war and business will follow; it has no choice - like any organism, living or otherwise, business has to play by the rules of the environment.

Of course the present national environment of which the business environment is a part is decidedly anti-government, anti-regulation. That will not change until The Great Disruption creates a wake-up Black Swan event.

(What if Rick Perry is President when the Black Swan event happens?)

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