Creative destruction? The myth of ‘better capitalism’ behind the 2025 Economics Nobel

By Bhabani Shankar Nayak*

The has awarded the to , , and “for having explained .” According to the , one half of the prize goes to Professor Joel Mokyr “for having identified the ,” while the other half is shared by Professors Philippe Aghion and Peter Howitt “for the .”

Ideologically, the three laureates view modern prosperity as the outcome of innovation nurtured by . They reject revolutionary change, arguing instead that capitalism—when improved through the process of —can drive technological progress and sustainable economic growth. Yet this belief in “better capitalism” overlooks the system’s internal contradictions and exploitative nature. It conceals capitalism’s failures and crises, dressing them up as innovation. This is not mere naivety but a selective, ideologically driven reading of history that privileges capital over people and the planet. In truth, there is no such thing as “better capitalism.”

The much-celebrated concept of innovation-driven growth through creative destruction is itself rooted in the ideology of —a mechanism that ensures continuous profit by rendering products and technologies outdated. This process has evolved from industrial capitalism to today’s , where control over data and algorithms defines power. Western economies continue to hide behind the that technological change inherently leads to progress, when in fact it often reproduces inequality and alienation. Technology may increase productivity, but what is truly creative is human labour. Machines merely extend repetitive, lifeless functions, while it is the ingenuity of workers that fuels innovation and growth. Undermining labour’s role through technological domination ultimately erodes productivity and innovation itself.

History shows that technological revolutions—from steam engines to artificial intelligence—have not automatically yielded higher productivity. Economist ’s 2023 study Why Isn’t Digitalisation Improving Productivity Growth? highlights the “.” Similarly, a UK Government review on “” finds that technology diffusion does not necessarily drive economic growth. In contrast, China’s experience suggests that rejecting the ideology of planned obsolescence allows digital innovation to contribute more effectively to productivity and development.

Capitalism’s creative destruction thus exploits and disciplines labour through new technologies, deepening the productivity paradox under digital capitalism. The emancipation of labour from capitalist domination is essential if both technology and human creativity are to flourish. A genuinely sustainable and inclusive model of economic growth requires the —its collective ownership, operation, and management—so that innovation serves all rather than enriching a few.

Today’s technological progress benefits a minority while marginalising the majority, perpetuating the same inequalities that capitalism has always produced. A society cannot be truly prosperous when abundance is reserved for a few and deprivation persists for many. Only when technology meets the needs of all can we envision a world free from exploitation and destitution. There is, therefore, little novelty in awarding a Nobel Prize to a theory that continues to romanticise capitalism under a different name. “Better capitalism” and “sustainable growth” remain contradictory illusions. The , celebrating creative destruction, merely reaffirms that illusion—without offering anything genuinely new.

---

*Academic based in UK

Comments

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

Four women lead the way among Tamil Nadu’s Muslim change-makers

By Syed Ali Mujtaba* A report published by Awaz–The Voice (ATV), a news platform, highlights 10 Muslim change-makers in Tamil Nadu, among whom four are women. These individuals are driving social change through education, the arts, conservation, and activism. Representing diverse fields ranging from environmental protection and literature to political engagement and education, they are working to improve society across the state.

From water scarcity to sustainable livelihoods: The turnaround of Salaiya Maaf

By Bharat Dogra We were sitting at a central place in Salaiya Maaf village, located in Mahoba district of Uttar Pradesh, for a group discussion when an elderly woman said in an emotional voice, “It is so good that you people came. Land on which nothing grew can now produce good crops.”

When free trade meets unequal fields: The India–US agriculture question

By Vikas Meshram The proposed trade agreement between India and the United States has triggered intense debate across the country. This agreement is not merely an attempt to expand bilateral trade; it is directly linked to Indian agriculture, the rural economy, democratic processes, and global geopolitics. Free trade agreements (FTAs) may appear attractive on the surface, but the political economy and social consequences behind them are often unequal and controversial. Once again, a fundamental question has surfaced: who will benefit from this agreement, and who will pay its price?

Why Russian oil has emerged as the flashpoint in India–US trade talks

By N.S. Venkataraman* In recent years, India has entered into trade agreements with several countries, the latest being agreements with the European Union and the United States. While the India–EU trade agreement has been widely viewed in India as mutually beneficial and balanced, the trade agreement with the United States has generated comparatively greater debate and scrutiny.

Trade pacts with EU, US raise alarms over farmers, MSMEs and policy space

By A Representative A broad coalition of farmers’ organisations, trade unions, traders, public health advocates and environmental groups has raised serious concerns over India’s recently concluded trade agreements with the European Union and the United States, warning that the deals could have far-reaching implications for livelihoods, policy autonomy and the country’s long-term development trajectory. In a public statement issued, the Forum for Trade Justice described the two agreements as marking a “tectonic shift” in India’s trade policy and cautioned that the projected gains in exports may come at a significant social and economic cost.

Samyukt Kisan Morcha raises concerns over ‘corporate bias’ in seed Bill

By A Representative The Samyukt Kisan Morcha (SKM) has released a statement raising ten questions to Union Agriculture and Farmers’ Welfare Minister Shivraj Singh Chouhan regarding the proposed Seed Bill 2025, alleging that the legislation is biased in favour of large multinational and domestic seed corporations and does not adequately safeguard farmers’ interests.

Conversations from the margins: Caste, land and social justice in South Asia

By Prof K S Chalam* Vidya Bhushan Rawat ’s three-volume body of conversational works constitutes an ambitious and largely unprecedented intellectual intervention into the study of marginalisation in South Asia . Drawing upon the method of extended dialogue, Rawat documents voices from across caste, region, ideology, and national boundaries to construct a living archive of dissent, memory, and struggle.

Bangladesh goes to polls as press freedom concerns surface

By Nava Thakuria* As Bangladesh heads for its 13th Parliamentary election and a referendum on the July National Charter simultaneously on Thursday (12 February 2026), interim government chief Professor Muhammad Yunus has urged all participating candidates to rise above personal and party interests and prioritize the greater interests of the Muslim-majority nation, regardless of the poll outcomes.

Search This Blog