It is the second most famous term in the history of economics after Adam Smith’s metaphor invisible hand. It describes the competitive market process in the real world. It was coined in 1942 by the famous, iconoclastic Austrian-American economist Joseph Schumpeter, who would reminisce:

I set out to become the greatest lover in Vienna, the greatest horseman in Austria, and the greatest economist in the world. Alas, for the illusions of youth…. As a horseman, I was never really first rate.

“Creative Destruction” …

The best businesses rise to the top in consumer-driven markets. Less competitive firms contract and even disappear. Creative destruction is the process whereby the bad is eliminated, the better replaces the good, and past performance gives way to new strategies and victors. No firm is forever, and financial loss is a characteristic of capitalism, as is the more used term profit.…

“Tension in the room mounted. The old man … pleaded with the [California] planning commission to protect his pigeons from ‘the Cuisinarts of the air’. The arrow went straight home, sending up a roar from the audience. A new image had been created, and the cameras flashed it across the country. Although often credited to staging by Cerrell and Associates, the term was conceived by the Sierra Club.”

– Paul Gipe, Wind Energy Comes of Age (New York: John Wiley & Sons, 1995, p. 450.

“I once believed in the Sierra Club, until the CLUB ( an insular bunch of activists who aren’t looking at the entire picture but only at their own agendas) started fully supporting [windpower] …. Everything the environmentalists (including myself for 20 years) have worked so hard to protect, is now being destroyed or in jeopardy.

I am writing in response to your recent article by Richard Mertens, “Wind Energy: Boom Sputters as Industry Tax Credit is Set to Expire.” This piece describes the plight of wind-industry workers and their families in the face of political uncertainty with the Production Tax Credit at risk. The implicit assumption of Mr. Mertens is that these jobs are worthy for a better environment and for a more sustainable energy future.

Please consider a very different view: that this industry is an artificial construct of cronyism; squanders resources at the expense of consumers and taxpayers; and toys with workers and their families who continually find themselves at the mercy of temporary political majorities.

Being a Christian myself, I am not sure how supporting a business that is based on mistruths and bilks taxpayers and ratepayers out of billions of their hard-earned dollars can in any way be considered “Christian.”…

It took a last minute change to a highly controversial bill and the last vote of the 112th Congress for Big Wind to eke out one more extension to the Production Tax Credit (PTC). With the dust now settling, it has become clear: President Obama rammed through the extension without debate or compromise.

Initial Negotiations

Following the November 6 presidential election, the wind industry anticipated a quick vote on the PTC that would provide a multi-year extension and remove the issue from the larger fiscal cliff negotiations. That did not happen and with 60+ tax provisions due to expire at the end of 2012 many parties are vying for the same dollars. With December 31 fast approaching, the likelihood of an extension was becoming more uncertain by the day.

On Thursday, December 21, just prior to Christmas and a full six weeks after the election, Speaker Boehner and House Republicans gave up trying to negotiate a fiscal cliff package with the White House and passed a bill that addressed spending cuts sufficient to avoid the sequester.…