Though I’ve been a harsh critic of Tyler’s Great Stagnation thesis, I was struck by the following figure in Edmund Phelps’ Mass Flourishing:
At first glance, this confirms a quarter-century of steadily declining creative destruction
– falling job creation and
job destruction. On closer look, though, there was little trend until the small recession of the early 2000s. Since then, however, creative destruction has relentlessly fallen.
Striking fact: The rate of job destruction during the Great Recession used to be perfectly normal! We experienced it as a calamity because job creation not only kept falling, but dipped below expectations.
Anyone seen this diagram over a longer time horizon? For other countries? Inquiring minds want to know.