Unbeatable, Imperfect Markets
Production is way to keep humans alive, it's how humans survive in this world. The more men you have involved with production the more you can get out of it. If it's just a one man show it's hard for the man to produce many things and make a living off of it. Although, the problem with gathering big groups for production is that men are fighting to survive and solely looking out for themselves.
Bylund states that, "In the modern day world people agree that being able to multi-task is not a benefit when it comes to production. Through peoples experience they have came to a conclusion that practicing on a specific task makes the product perfect. Taking use of the modern day tools we have also perfects production." (Bylund, P. L., 2016, p.50)
The above quote helps us understand that it's good to have a group when we produce a product so that each group member has a specific task that they can perfect. When trying to multi-task in production it's easy to make mistakes because you are focusing on so many things at once. Using the modern day resources is also a great way to make sure the production process goes smoothly. When people in their groups specialize on their task the production process tends to have less complications and alterations towards the end.
Production is a way to connect with others and help support others and their needs. Production begins to all get interconnected. Bylund came up with the example that what if Adele decided to cut down her apple trees. In order for Adele to do this she would need specific tools to get the job done. This example shows that Adele needs to use another means of production before she starts the production of cutting down her apple trees. Almost every tool or some sort of machinery made needs entrepreneurs t go through production in order for the product to be made. When it comes to production there are specific stages of production to get the job done.
In a competitive market, this type of adjustment is undertaken all the time-even if specific prices do not suddenly go through the roof. Indeed, entrepreneurs compete by keeping their cost down and by figuring out better production techniques, and will shift their production efforts toward the best possible-at least, the best possible technique they know about or can imagine-alternatives. Part of the driving force in this constant and continuous effort is to beat the competition, but part of it is also the chance for profit.
The market is constantly changing so entrepreneurs have to constantly be checking the market to make sure their prices match. Although entrepreneurs need to worry about the market changing they also need to worry about their competition. Entrepreneurs want to make sure their prices are better than their competition. Entrepreneurs don't want their products to be more expensive than the competition so they need to keep a look out for this. Entrepreneurs main focus when it comes to production is making sure they are satisfying the customers needs.
The Process of Creative Destruction
Capitalism is a way to control economic change within a society. Capitalism is continuously changing because the economy is constantly evolving. When the economy gets new markets, new goods, new ways to produce products, and new transportation this means that society is evolving.Creative Destruction helps us better understand when new innovations come into. place and take over the old innovations that entrepreneurs have made. Entrepreneurs want to grow when the economy grows so creative destruction helps entrepreneurs get to the place they need to be. The sad part about creative destruction is that it makes old innovations and companies go extinct. But, in order for the economy to grow we need to do this.
Creative destruction helps capitalist countries succeed in their businesses. This outlook helps economies grow and evolve with the new world around the. This evolution helps bring in more money for economies. These economies need entrepreneurs that are willing to take risks on producing new products. Creative destruction helps economies have an upper hand on their competition.
It is hardly necessary to point out that competition of the kind we now have in mind acts not only when in being but also when it is merely an ever-present threat. It disciplines before it attacks. ( Schumpeter, J. A. 1962, p. 3)
Entrepreneurs need to focus on competition because they want to make a profit and if they aren't looking at their competition they will not succeed. Looking at competition helps the entrepreneur look at their mistakes and fix them so that they can be better than the company they go against.
Creative destruction is meant to change the economy. This change can cause many upbringings but it's worth it in order to evolve.
References
Bylund, P. L. (2016). Chapter 4: Unbeatable, Imperfect Markets. In Seen, the unseen, and the unrealized: How regulations affect our everyday lives (pp. 47–72). essay, Lexington Books.
Schumpeter, J. A. (1962). Chapter VII: The Process of Creative Destruction. In Capitalism, socialism and democracy (pp. 81–86). essay, Harper Torchbooks, Harper & Row.