Behind the Book: Q&A with Dr. John T. Dalton

By Erin Marlow, Communications Specialist in the Office of the Dean of the College

Associate Professor of Economics Dr. John T. Dalton recently published his book Creative Destruction: An Introduction with Cato Institute. The book, written in collaboration with former Wake Forest student Andrew Logan (’21), examines what happens when innovations and entrepreneurial practices — some as familiar to us as Netflix and Uber— replace traditional technologies and ways of being. Inspired partly by a course Dr. Dalton taught during a summer abroad in Vienna, Creative Destruction dives into how both creation and destruction are central to a growing economy.

Dr. Dalton recently spoke with the Dean’s Office about the origins of the book and his research.

What inspired you to write this book?

The book I wrote with Andrew Logan (’21) is about the economist Joseph Schumpeter’s idea of creative destruction. Creative destruction describes when a new innovation enters the economy — the creation — and displaces the old ways of being — the destruction. For example, Netflix enters the market driving Blockbuster out of business. Schumpeter argued that creative destruction was “the essential fact about capitalism” and a main driver of economic change.

I have always had a fascination with economic dynamics, and Schumpeter’s ideas, in particular, inspired much of my thinking when I was first learning economics as an undergraduate. I taught a course on the life and economics of Schumpeter at the Flow House in Vienna (Vienna being the place where Schumpeter spent the first half of his life) in Summer 2018. Andrew was a student in that course, and our book was ultimately inspired by our experiences teaching and learning Schumpeter together.

What was a major challenge that you faced in your research? 

The book is written for a popular audience of anyone with an interest in economics and the social sciences more broadly. Writing for a non-academic audience was a new experience, so I had to think carefully about how best to connect with the reader. With the help of our reviewers and editors, I think we were able to write a book that many people will enjoy and think about long after they put it down.

What would you say is your project’s unique contribution to the field?

Our goal in writing the book is to introduce readers to Schumpeter and his idea of creative destruction. We do this by being rigorous with the ideas and analytical argument and supporting them with historical and contemporary examples to illustrate the points. Creative destruction is always at work in well-functioning market economies — as evidenced by the continual creation and destruction of jobs in the labor market, for example — but it can be more salient at particular points in time, like the one we are currently living through. The Age of AI will affect all of us through the creative destruction it unleashes, and people throughout society need to understand the forces at work in order to better adapt to the changing economy.

Can you say a bit more about how you bring students into your research?

The book ultimately stems from teaching Schumpeter in the classroom. Andrew worked as my research assistant for many years while he was a student here at Wake Forest. Our work together resulted in numerous peer-reviewed academic journal articles, and the book is the culmination of that work together.

What’s next? Do you see your research evolving for future publications? Anyone at Wake Forest you would like to partner with?

I plan to continue writing on creative destruction over the next few years. One chapter was actually cut from the book during the publication stage. I plan on building from it and turning that particular lemon into lemonade.

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Learn more about Dr. Dalton’s work on the Libertarianism.org podcast episode “Creative Destruction: A Conversation with John Dalton.”