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- [Narrator] "Infinity War" is known for its spectacular special effects.
But we can pretty certain that in a couple of decades.
they'll look old and outdated.
That's just the way it goes with movies.
- [Ian] The first adult movie
that I ever saw was the original "Jaws" in summer camp.
It was terrifying,
and now you go back and look at the mechanical shark
that jumped onto the boat,
the great white, over 20 feet long, thrashing about,
and you go that is a ridiculous, stupid-looking thing.
So, I feel pretty clear that we have come a long way
since the '70s in terms of graphics.
- [Narrator] This constant improvement is not limited
to special effects --
sound quality, picture quality, theater seats.
You name it, it seems to have improved.
Well, maybe not the acting.
- [Edward] Oh no, not the bees! Not the bees! Ahh!
- [Narrator] Economists have a term for this type of improvement --
"creative destruction."
- [Tyler] Creative destruction was a term in Economics
coined by an Austrian economist, Joseph Schumpeter,
early in the 20th century.
It's really become a central driving idea in Economics.
- [Narrator] Creative destruction describes the continual process
of innovation in which new products and services replace outdated ones.
Take photos -- we live in a world
of smartphones, Instagram, and augmented reality.
How we got here reveals a long and winding path
of creative destruction.
- When I was a kid, you take a photo,
and the Polaroid comes out,
you wave it around 'cause you think it's going to make it dry faster.
I don't know if that actually worked.
And it's several minutes later,
and it probably doesn't look very good,
but you have it!
And 10 years later, it's all faded, and it probably doesn't keep.
- [Narrator] Before the digital era, you might have a Polaroid
or you might buy film, typically from Kodak.
You had to pay a few dollars for film,
which got you about 20 pictures,
and then pay more to get them developed.
- [man] Got double prints with mine!
- [Narrator] If, whoops, your eyes were shut -- too bad!
You didn't know until days later.
And if you accidentally opened your camera,
poof, your pictures are gone!
Digital cameras came on the scene at the end of the 20th century.
Entrepreneurs quickly improved the cameras, the software,
and the accessories.
People increasingly switched away from film.
It was cheaper, easier and more enjoyable.
These entrepreneurs represent the creative side
of creative destruction.
But what about the flip side, the destruction?
Polaroid employed over 20,000 people in their heyday.