The newspaper whose newsroom topped 400 people at the height of the dot-com economic boom in Silicon Valley could not avoid downsizing to reflect a local economy that never recovered. But the larger problem…is that the stock market offers no slack to news organizations in less profitable years….
…Two weeks ago, the publicly traded Knight Ridder, the nation’s second-largest newspaper chain, announced that earnings per share would fall 20%, which it attributed to higher paper costs and health insurance premiums.
Joseph A. Schumpeter, Capitalism, Socialism and Democracy:
The opening up of new markets, foreign or domestic, and the organizational development from the craft shop and factory to such concerns as U.S. Steel illustrate the same process of industrial mutation-if I may use that biological term-that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one. This process of Creative Destruction is the essential fact about capitalism. It is what capitalism consists in and what every capitalist concern has got to live in….
Every piece of business strategy acquires its true significance only against the background of that process and within the situation created by it. It must be seen in its role in the perennial gale of creative destruction; it cannot be understood irrespective of it or, in fact, on the hypothesis that there is a perennial lull….