this was part of schumpeter's description. schumpeter's general conclusion?se enormous short-lived profits are justified by the benefits innovation brings. given the dominant role that innovation has played in american economic growth, it's difficult to disagree. huge profits can represent monopoly and distortion, but they also can be the oil that lubricates the wheels of progress. of the thousands of people who start new firms every year in this country, most will fail. financial institutions large corporations and individual entrepreneurs must calculate probabilities for failure and success. we're propelled by the marketplace to invest our time and money in those ventures offering the best chance of return. for economics usa, i'm david schoumacher. captioning is made possible by the annenberg/cpb project captioning performed by the national captioning institute, inc. captions copyright 1986 educational film center annenberg media ♪ nenberg media ♪ many elderly americans were too old to work. pensions were non-existent savings gone. what was franklin delano

. >> that's correct schumpeter was interested in noting that along with destruction is the creativityt pushes capitalism in a capitalist system forward. john: one individual discovered it in france over a hundred years ago. and these cheap imports are unfair competition, they said and government should stop the import. in response he wrote a satire that he titled the candle makers petition. and it read that the manufacturers of candles and street lamps and generally everything connected with lighting petition the government. we suffer from the unfair competition of a foreign rival. this has such an advantage over us that he floods the market in the product. he offers it at a low price. at the moment the disappears, all the customers desert us and turn to him and as a result an entire domestic industry is rendered stagnant. this competes against us without mercy. and of course the foreign manufacturer that they are upset about is the sun. >> it is traditional hospitality protesting against some businesses like airbnb. >> here is that petition, pass a law ordering the closing of all win