WASHINGTON, DC: We are in the throes of another round of what the economist Joseph Schumpeter memorably called “creative destruction.” Two icons ofAmerican business — Macy’s and Sears — are struggling. Macy’s plans to close100 stores to improve profitability, and Sears has sold its Craftsman tools line for roughly $900 million to raise cash. Faster productivity growth is the basic source of higher incomes and living standards. Changing the trajectory of productivity growth is a central challenge for the incoming Trump administration — as it would have been if Hilary Clinton had won. This is, I think, the basic explanation of what’s happening at Macy’s and Sears.

Source: Manila Times January 13, 2017 15:14 UTC