CASE STUDY 1
Economist Joseph Schumpeter, who
taught at Harvard from 1932 until his death in 1950, popularized the term
“creative destruction” to describe the capitalist process in which
entrepreneurs introduce new goods and services to economic markets that
displace existing goods and services. Though this innovative process results in
increased wealth and better standards of living overall, not everybody benefits
equally. The opportunity cost of buying a newly available product is the use of
the old one that has been given up, so those in the camp of the new, different,
and desirable do very well, while those camped out with the old and no longer
desirable products see their prospects decline.
Provide an example of creative destruction you have
witnessed during your lifetime and describe what the benefits and costs to the
economy have been. Who was enriched and whose fortunes declined?
For your main (initial) response, construct thoughtful and
detailed responses to the Discussion.After your
initial response, post at least two substantial responses to your classmates
and instructor’s posts in order to earn full credit.Case Study 2
Read
the Last Word piece, “Government Failure” in the News, in Chapter 5 in your
textbook. Investigate the use of special-interest lobbyists for some of these
articles. The process of lobbying legislatures is itself a big business. State
legislatures are under the same kind of pressure from interest groups as the
Senate and the House of Representatives. Provide an example to discuss how
special interests can succeed in perpetuating policies that are opposed by the
majority of voters because the costs of organizing and motivating groups to
take political action increase with group’s size.
For your main (initial) response, construct thoughtful and
detailed responses to the Discussion.After your initial response, post at least two
substantial responses to your classmates and instructor’s posts in order to
earn full credit.

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