Passage 2: The concept of "creative destruction," coined by economist Joseph Schumpeter, describes the incessant process whereby capitalism dismantles outdated economic structures and replaces them with innovative ones. This cyclical transformation, while generating short-term disruption and unemployment, ultimately drives long-term economic growth and prosperity. The digital revolution exemplifies this principle: while traditional retail struggled, e-commerce flourished, creating entirely new employment categories like logistics optimization specialists and user experience designers. Critics argue, however, that the pace of contemporary disruption outstrips workers' capacity to retrain, exacerbating inequality.
Question 3
According to the passage, creative destruction is characterized by: