Forum Archive Index - February 2004

[Gavin Treadgold <gav@rediguana.co.nz>]

Hi All.

Found this on another list recently, and thought a few here would be
interested to read it. It is a reprint from the Federal Reserve of Dallas
Annual Report in 1992. There is a very interesting essay on 'churn' - the
creation and destruction of jobs in the name of economic progress. Of course
for FA investors, it makes a very interesting read, especially with regards
to longer term investments in industries that are being torn down, and those
that are being newly created. There are numbers and tables for the TA crowd
;)

http://grift.com/churn.pdf

"Economists, questioning why America's job creation in the recovery of the
early 1990s fell short of expected levels, have reconsidered the ideas of
Joseph Schumpeter, who offered the first scholarly explanation of the churn
in the 1930s. Schumpeter advanced the paradox that economic progress
destabilizes the world. Progress and job destruction go hand in hand in a
dynamic process he called creative destruction. Today, as in the 1930s,
Schumpeter's insights help explain how jobs emerge and disappear through the
innovation and entrepreneurship of free enterprise."

If you read this, I'd be interested to hear from people on what industries
in Australasia you think are currently being created or destroyed?

Cheers Gav



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