9:59:59.000,9:59:59.000 ♪ [music] ♪ 9:59:59.000,9:59:59.000 - [Narrator] "Infinity War" is known [br]for its spectacular special effects. 9:59:59.000,9:59:59.000 But we can pretty certain[br]that in a couple of decades. 9:59:59.000,9:59:59.000 they'll look old and outdated. 9:59:59.000,9:59:59.000 That's just the way it goes with movies. 9:59:59.000,9:59:59.000 - [Ian] The first adult movie 9:59:59.000,9:59:59.000 that I ever saw was [br]the original "Jaws" in summer camp. 9:59:59.000,9:59:59.000 It was terrifying, 9:59:59.000,9:59:59.000 and now you go back [br]and look at the mechanical shark 9:59:59.000,9:59:59.000 that jumped onto the boat, 9:59:59.000,9:59:59.000 the great white, [br]over 20 feet long, thrashing about, 9:59:59.000,9:59:59.000 and you go that is a ridiculous, [br]stupid-looking thing. 9:59:59.000,9:59:59.000 So, I feel pretty clear [br]that we have come a long way 9:59:59.000,9:59:59.000 since the '70s in terms [br]of graphics. 9:59:59.000,9:59:59.000 - [Narrator] This constant [br]improvement is not limited 9:59:59.000,9:59:59.000 to special effects -- 9:59:59.000,9:59:59.000 sound quality, picture quality, [br]theater seats. 9:59:59.000,9:59:59.000 You name it, [br]it seems to have improved. 9:59:59.000,9:59:59.000 Well, maybe not the acting. 9:59:59.000,9:59:59.000 - [Edward] Oh no, not the bees![br]Not the bees! Ahh! 9:59:59.000,9:59:59.000 - [Narrator] Economists have a term[br]for this type of improvement -- 9:59:59.000,9:59:59.000 "creative destruction." 9:59:59.000,9:59:59.000 - [Tyler] Creative destruction was [br]a term in Economics 9:59:59.000,9:59:59.000 coined by an Austrian economist,[br]Joseph Schumpeter, 9:59:59.000,9:59:59.000 early in the 20th century. 9:59:59.000,9:59:59.000 It's really become [br]a central driving idea in Economics. 9:59:59.000,9:59:59.000 - [Narrator] Creative destruction[br]describes the continual process 9:59:59.000,9:59:59.000 of innovation in which new products[br]and services replace outdated ones. 9:59:59.000,9:59:59.000 Take photos -- we live in a world 9:59:59.000,9:59:59.000 of smartphones, Instagram,[br]and augmented reality. 9:59:59.000,9:59:59.000 How we got here reveals[br]a long and winding path 9:59:59.000,9:59:59.000 of creative destruction. 9:59:59.000,9:59:59.000 - When I was a kid, [br]you take a photo, 9:59:59.000,9:59:59.000 and the Polaroid comes out, 9:59:59.000,9:59:59.000 you wave it around 'cause you think[br]it's going to make it dry faster. 9:59:59.000,9:59:59.000 I don't know [br]if that actually worked. 9:59:59.000,9:59:59.000 And it's several minutes later, 9:59:59.000,9:59:59.000 and it probably doesn't [br]look very good, 9:59:59.000,9:59:59.000 but you have it! 9:59:59.000,9:59:59.000 And 10 years later, it's all faded, [br]and it probably doesn't keep. 9:59:59.000,9:59:59.000 - [Narrator] Before the digital era,[br]you might have a Polaroid 9:59:59.000,9:59:59.000 or you might buy film,[br]typically from Kodak. 9:59:59.000,9:59:59.000 You had to pay [br]a few dollars for film, 9:59:59.000,9:59:59.000 which got you about 20 pictures, 9:59:59.000,9:59:59.000 and then pay more[br]to get them developed. 9:59:59.000,9:59:59.000 - [man] Got double prints with mine! 9:59:59.000,9:59:59.000 - [Narrator] If, whoops, [br]your eyes were shut -- too bad! 9:59:59.000,9:59:59.000 You didn't know until days later. 9:59:59.000,9:59:59.000 And if you accidentally [br]opened your camera, 9:59:59.000,9:59:59.000 poof, your pictures are gone! 9:59:59.000,9:59:59.000 Digital cameras came on the scene[br]at the end of the 20th century. 9:59:59.000,9:59:59.000 Entrepreneurs quickly improved[br]the cameras, the software, 9:59:59.000,9:59:59.000 and the accessories. 9:59:59.000,9:59:59.000 People increasingly switched [br]away from film. 9:59:59.000,9:59:59.000 It was cheaper, easier [br]and more enjoyable. 9:59:59.000,9:59:59.000 These entrepreneurs represent [br]the creative side 9:59:59.000,9:59:59.000 of creative destruction. 9:59:59.000,9:59:59.000 But what about the flip side,[br]the destruction? 9:59:59.000,9:59:59.000 Polaroid employed [br]over 20,000 people in their heyday. 9:59:59.000,9:59:59.000 Kodak dwarfed Polaroid,[br]employing over 120,000 employees 9:59:59.000,9:59:59.000 and being one of the most [br]well-known companies in the world. 9:59:59.000,9:59:59.000 The digital age, while rejoiced [br]by consumers ushered 9:59:59.000,9:59:59.000 them both into bankruptcy. 9:59:59.000,9:59:59.000 - But let's be clear, the people[br]that used to make the Polaroids 9:59:59.000,9:59:59.000 and the Kodaks don't like [br]that development 9:59:59.000,9:59:59.000 because they just lost jobs. 9:59:59.000,9:59:59.000 Polaroids have had [br]a bit of a resurgence lately 9:59:59.000,9:59:59.000 as a retro product, 9:59:59.000,9:59:59.000 but that's actually [br]not the same company 9:59:59.000,9:59:59.000 that made the originals. 9:59:59.000,9:59:59.000 That Polaroid is long gone. 9:59:59.000,9:59:59.000 See, there are two sides [br]of creative destruction, 9:59:59.000,9:59:59.000 entrepreneurs inventing new products[br]or ways to save money 9:59:59.000,9:59:59.000 are how we improve [br]our standard of living. 9:59:59.000,9:59:59.000 These improvements are [br]the foundation of prosperity, 9:59:59.000,9:59:59.000 and positively impact [br]generation after generation. 9:59:59.000,9:59:59.000 But the flip side can make jobs[br]or even whole industries go extinct. 9:59:59.000,9:59:59.000 Unlike the games, [br]that pain typically subsides. 9:59:59.000,9:59:59.000 People usually find new jobs. 9:59:59.000,9:59:59.000 Most of those thousands[br]of employees at Polaroid and Kodak 9:59:59.000,9:59:59.000 went on to other types of work. 9:59:59.000,9:59:59.000 When you take the long view,[br]these job changes have 9:59:59.000,9:59:59.000 historically been beneficial. 9:59:59.000,9:59:59.000 In the 1800s, more than half [br]of the United States 9:59:59.000,9:59:59.000 was employed in farming. 9:59:59.000,9:59:59.000 Because of time-saving inventions[br]like the tractor, 9:59:59.000,9:59:59.000 farmers now make up less [br]than 2 percent of the workforce. 9:59:59.000,9:59:59.000 - Now you might think,[br]"My goodness! Those poor farmers -- 9:59:59.000,9:59:59.000 where did they go? What kind of jobs[br]could they possibly have had?" 9:59:59.000,9:59:59.000 But by liberating that labor,[br]we made it possible for people 9:59:59.000,9:59:59.000 to do things, [br]like produce automobiles, 9:59:59.000,9:59:59.000 produce airplanes for more people [br]to become entertainers 9:59:59.000,9:59:59.000 or movie stars, [br]more people to become doctors. 9:59:59.000,9:59:59.000 - [Narrator] So in the long run,[br]we have more people working 9:59:59.000,9:59:59.000 with film and more building [br]photo apps and the like. 9:59:59.000,9:59:59.000 However, in the short run, 9:59:59.000,9:59:59.000 the transition can [br]be extremely painful. 9:59:59.000,9:59:59.000 If you've spent your life perfecting [br]the craft of developing film, 9:59:59.000,9:59:59.000 you're not walking out of Kodak[br]and into a sweet gig at Instagram. 9:59:59.000,9:59:59.000 You might just be out of a job[br]and out of luck. 9:59:59.000,9:59:59.000 Creative destruction comes [br]in many forms. 9:59:59.000,9:59:59.000 We often think [br]of the transformative technology, 9:59:59.000,9:59:59.000 like the tractor,[br]or the digital camera, 9:59:59.000,9:59:59.000 or the smartphone,[br]which fundamentally changes 9:59:59.000,9:59:59.000 how we do things. 9:59:59.000,9:59:59.000 Here's a not so obvious source[br]of creative destruction -- trade. 9:59:59.000,9:59:59.000 - Trading with another nation,[br]it is a kind of technology. 9:59:59.000,9:59:59.000 It's a way of getting [br]something else more cheaply. 9:59:59.000,9:59:59.000 You're taking things [br]you used to produce, 9:59:59.000,9:59:59.000 finding a newer, cheaper way [br]of doing it -- 9:59:59.000,9:59:59.000 be it with tractors, [br]or with robots, 9:59:59.000,9:59:59.000 or with foreign trade. 9:59:59.000,9:59:59.000 And they're all technologies[br]enabling us to produce 9:59:59.000,9:59:59.000 new and better things more cheaply. 9:59:59.000,9:59:59.000 - [Narrator] For example,[br]roses used to be grown in the U.S. 9:59:59.000,9:59:59.000 raised in heated greenhouses. 9:59:59.000,9:59:59.000 Now instead of burning fuel[br]to keep the roses warm, 9:59:59.000,9:59:59.000 most of our roses come [br]from warm weather climates. 9:59:59.000,9:59:59.000 This creative destruction has[br]produced a plentiful supply 9:59:59.000,9:59:59.000 of affordable roses. 9:59:59.000,9:59:59.000 But just like with Kodak,[br]not everyone benefits. 9:59:59.000,9:59:59.000 That rose farmer [br]in Pennsylvania isn't thrilled 9:59:59.000,9:59:59.000 by the introduction of foreign roses. 9:59:59.000,9:59:59.000 She might be out of a job. 9:59:59.000,9:59:59.000 More than ever, better education[br]and training programs are needed 9:59:59.000,9:59:59.000 so that people can transition[br]to new types of work. 9:59:59.000,9:59:59.000 - Why is this so important now? 613