A Tale of Economic Dynamism from North Carolina Furniture Country
This would be a terrible time for American to reject dynamism, that churning of jobs and firms that marks a vigorous economy where creative destruction is happening apace. Even with big economic policy actions in recent years, this still seems to be an economy where potential growth is around 2%. The Atlanta Fed describes a healthy, dynamic economy thusly:
In a dynamic economy, firms are constantly opening and closing, with workers churning among them. In a dynamic economy, entrepreneurs and innovators are incessantly commercializing new ideas and business models, keeping established firms on their toes, and pushing the economy to evolve and advance. … Like a living being, the economy needs circulation — churn — in order to remain healthy. It needs its old or damaged cells to be broken down and their raw materials recycled. It needs to develop new resiliencies when exposed to the contagion of a recession or technology-driven disruption. And it must be able to constantly adapt to changes in its environment in order to survive. Dynamism powers all of this…….