What’s the matter with disruption?

Aug 08, 2019

“Disruption,” as applied to business, has become synonymous with innovation, and for some it is unambiguously positive as a driver of economic progress. But for others—such as the cab drivers who’ve seen their fortunes fall with the advent of ride-hailing apps—the downside of disruption is evident. In this installment of the In-House Ethicist video series, Chicago Booth’s John Paul Rollert reviews why disruption is so critical to capitalism, how it led to the Luddite backlash, and how economist Joseph Schumpeter, who coined the phrase “creative destruction,” regarded the cultural turmoil disruption engenders.