Murdoch, Creative Destruction and Libertarianism

I just finished reading through the Murdoch speech at the Lowy Institute last night. It is both exciting and relieving.

Murdoch brings a rare glimpse of important Schumpeterian economics to the mainstream. He proposes that Australia is on the cusp of becoming something great, with “more than a touch of libertarianism.”

Firstly, he discusses the importance of embracing Australian values, and secondly how we must continue to attract and keep talent through immigration. Yet, it is his third and final point that is the most exciting, and true – the importance of disruption to Australia and the world.

The coming century will be one of great disruption; a grapple between technology, institutions and the law. Disruption in this sense is creative destruction – the process of new technologies taking over old, causing structural change. While this change may be painful at first, it is valuable; exceptionally valuable. We must embrace this, not oppose or resist it. There will be natural opposition to these changes, but we must not let them win.

The way we handle these decisions in the face of uncertainty will determine our position in an increasingly global competition.

I’ll leave you with the words of Murdoch himself:

“We must be leaders, not followers.

We must be egalitarian, not elitist.

We must be victors, not victims.”

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