John Tamny explains how capitalism really works:

More broadly, all this hand-wringing over the presumed negative impact of automobile-related job losses speaks to a massive misunderstanding of what makes economies grow. Economies falter when work effort is duplicative, and they grow when finite capital is redeployed in order to create new goods that fulfill a previously unmet market need.

No doubt the invention of the personal computer put manufacturers of typewriters out of business, but this natural economic change freed up both physical and human resources that were then deployed with the creation of new industries in mind. Simply put, the computer has arguably destroyed more jobs than any product in history, but far from impoverishing us, its creation made us more productive, and the capital that always follows productivity and innovation led to the creation of new industries meant to support the ubiquitous PC.

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