Accounting. Law. Marketing. Creative destruction. Crowd at New York's American Union Bank during a bank run early in the Great Depression.
Marx argued that the devaluation of wealth during capitalism's periodic financial crises was an inevitable outcome of the processes of wealth creation. Creative destruction (German: schöpferische Zerstörung), sometimes known as Schumpeter's gale, is a term in economics which since the 1950s has become most readily identified with the Austrian American economist Joseph Schumpeter[1] who derived it from the work of Karl Marx and popularized it as a theory of economic innovation and the business cycle. According to Schumpeter, creative destruction describes the "process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one".[2] In Marxist economic theory the concept refers more broadly to the linked processes of the accumulation and annihilation of wealth under capitalism.[3][4][5] History[edit]