The Americans invented the integrated circuit,
which enabled calculators to become smaller
and better at a furious pace.
The Japanese built their wealth by making
those products affordable for millions of
people throughout the world.
Blame the Americans, the Japanese and
everyone else who was involved in
destroying the value of Facit’s
Capitalism creates growth and prosperity by
destroying old technologies and products.
The Austrian economist Joseph
Schumpeter referred to this as
This essentially means that the road to
wealth goes via massive layoffs and
Capitalism is brutal and those people who
claim the opposite have most likely never
been exposed to the problems it creates.
The theory of Creative Destruction is also a
profound criticism of everyone who claims
that ’society’ (government) should bail out
collapsing industries and ’act responsibly’.
What would have happened if electronic
calculators had been abolished?
Who would have benefited from letting
taxpayers finance an industry and a
company which had become history?
No one. Such measures would have prevented
the scarce resources in society from doing
something more productive.
In 1971 it was Facit and Åtvidaberg that
suffered from capitalism.
Capitalism seems to be pretty good at messing
around with capitalists.
The electronic revolution destroyed a large
amount of the wealth that the Ericsson family
had accumulated during 50 years.
Thanks to ’Brukskultur Åtvidaberg’ och the
municipal government of Åtvidaberg. The Facit
archive is a fantastic source.
Christian Sandström is a
PhD student at Chalmers
University of Technology in
Gothenburg, Sweden. He
writes and speaks about
disruptive innovation and
christian.sandstrom at chalmers.se