It Is Inevitable
Virgin Atlantic Founder Richard Branson had a creative way of describing the phenomenon of creative destruction, the memorable phrase of economist Joseph Schumpeter. He empathized with the pain of employees of British Airways who are forfeiting one month without pay in order to preserve employment at this difficult time. However, he noted that in the forest, old shoots are allowed to die such that new saplings may grow. Absent a compelling threat of systemic risk, such as a legitimate banking crisis, Branson sees government intervention as counter-productive. It simply delays the inevitable, at tremendous cost to the taxpayers, for which our as-yet-unborn great-grandchildren will be paying. And it suppresses or raises the cost of innovation which could provide better services and new jobs. Branson’s interview was thoughtful and we can only hope that policymakers listen to this very articulate and successful entrepreneur.