It’s back to school time and everyone has flooded the store to buy calculators, notebooks, dictionaries, and planners, but these are all items that come with a smartphone so it makes those products obsolete for most individuals. Joseph Schumpeter was a popular economic philosopher who pioneered the theory of creative destruction, which occurs when new innovations replace old industries. The benefits are a higher standard of living, but at the cost of jobs in those old industries.
Structural unemployment occurs when the skills and trades are no longer in demand from the general population rather than market fluctuations. Adam’s girlfriend, Amy, quickly points out that his travel agency failed because people use the internet to book travel and no long need travel agents.