Creative destruction at risk

...as a general matter, the rest of the world will be hit harder than the U.S. Indeed, the U.S. retains a great advantage over the rest of the world -- its belief in "creative destruction." As long as the U.S. retains this belief, it will be the leader in innovation, which Ferguson sees as the key to recovery and long term prosperity. However, the push towards regulation and bailouts suggests a loss of faith in "creative destructive." In reality, though, it's wrong in general to blame the current difficulties on lack of regulation. In the 1970s, the last period of serious economic distress, the U.S. economy was heavily regulated, and regulation contributed in some instances to the current situation.

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