Putting Dynamism in Its Place
The phrase "economic dynamism" has become so ubiquitous, its connotations so obviously desirable, that we accept uncritically the case made for its virtues and imagine it might involve no tradeoffs. And because more economic dynamism is better, public policy must always be oriented toward nurturing it. Merely inquiring as to the basis or veracity of these axioms risks exposing oneself as unsophisticated and, perhaps worst of all, insufficiently "pro-growth." But an inquiry is very much needed. That disruption and dynamism can deliver enormous benefits is certainly true — but we do ourselves no favors by disregarding the prerequisites for their doing so, or ignoring the costs involved.