Importance of Creative Destruction

Robert Samuelson notes:

www.washingtonpost.com/opinions/capitalisms-tough-love-the-real-lessons-from-the-fall-of-sears-and-ge/2019/01/13/fef2d576-15df-11e9-803c-4ef28312c8b9_story.html

“There is a life cycle that applies to almost all firms, especially large, successful firms. If they have introduced some important or popular product, these firms can grow rapidly for some period, often decades. But sooner or later, their market will become mature. Growth and profitability may weaken. Competition may strengthen.

This leaves firms in a precarious position. The practical question is: What do they do with their present profits, which flow from their past success? The choices are mostly unattractive.”