The economist Joseph Schumpeter coined the phrase “creative destruction” to describe the working of capitalism: the old and obsolete is destroyed by changing technology and changing tastes.  The merciless operation of the market destroys companies that can’t adapt to new circumstances. Destruction is the operative word.  It’s not pleasant.  Vigorous and once profitable operations fade away.  People lose their jobs and their money.  Customers find their operations upset by the disappearance of suppliers. The Digital Equipment Corporation was founded in 1957 with a $70,000 investment.  Its minicomputers became extremely profitable, and at one point, DEC was the second largest computer company in the world.  However, by the 1990s it was losing money, was swallowed up by competitors, and faded away.  A world leading company couldn’t keep up, made mistakes, and was destroyed with shocking swiftness. Another...(Read Full Article)