Capitalism - historical and cultural context...

During economic crises, some may ask "Does capitalism work?". In this recent article from Knowledge@Wharton, this question is revisited by the author of a 1980 cover story from Time magazine. George Taber discusses the concept of "creative destruction", life cycles of large corporations, the innovation of entrepreneurs, the business cycle of boom and bust, and cultural differences in applying solutions to economic problems. He concludes:

"As Washington policymakers search for ways to solve the current economic crisis, it is crucial that they keep in mind their country's heritage and tradition. The American brand of capitalism rests on creative destruction, innovation and, ultimately, entrepreneurs. It is impossible to rebuild the superstructure of U.S. prosperity by destroying its foundation."