Schumpeter acknowledged that creative destruction exacts a human toll. The continuing wave of layoffs in the 1990s (in recent weeks, add Eastman Kodak, Citicorp and Levi Strauss to the list) unquestionably creates hardship for the individuals and families involved.
But it's an occupational hazard for the media that news of 10,000 job cuts inevitably makes headlines while thousands of individual hirings across the country each day go unreported.
Schumpeter believed that capitalism's success was not a function of perfect competition, but simply of innovation and constant change and renewal at the invisible hand of market forces.
One clear implication is that if it wants to remain the world's premier capitalist nation, America has little choice but to accept perpetual upheaval in business. Forget the idea, then, that restructurings and downsizings will someday cease. By Schumpeter's definition, such stability is incompatible with successful capitalism and economic growth.