The Corporate Law Group

Destruction

DestructionYou hear us talk about the virtues of creative destruction. Allowing innovation destroys the old to make way for the new. Just ask the cabbies and the typewriters. Of course, destruction isn’t fun. Someone has to adjust because someone else innovated their market out from under them.

But you hope that the destruction is from innovation, and not government. Government can never, by definition, be in the creative destruction business. The power structure is always protecting itself. Protecting the status quo from the competition.

Well, of the ten largest bankruptcies in 2016, all are in the energy business except for one, Republic Airways. One is a solar company that couldn’t make it despite truckloads of government cash, two mined coal, and the remaining 6 are oil and gas companies. Fracking killed a couple (as well as the Soviet Union). The EPA killed a couple more.

We feel for those upended by innovation. But the alternative is much worse. According to Acemoglu and Robinson from Why Nations Fail, the French elites kept out looms because they didn’t know what to do with the people who spun cloth. Without creative destruction we won’t innovate and without innovation we will all be poorer. We will lag those countries that allow creative destruction to do its good work. And if we allow it, they will lag us.

Trust us that the next decade will bring innovation in the law business that will benefit everyone. Legal services will become more democratized, cheaper, more available, and easier to use. Think we lawyers are too expensive, unavailable, too exclusive, and not responsive? You will get your wish as the legal services market is destroyed by innovation. Fintech now, Lawtech next. Watch this space.