Lew and Pete: The Atlantic article on Walmart is encouraging. It does, however, have a few echoes of the refrain “Walmart destroys small businesses,” and helps destroy “local economies.” The notion that any established firm should have an expectation of continued existence is what is fueling the bailout foolishness (“too big to fail”). Joseph Schumpeter addressed this phenomenon in his treatment of “destructive competition.” Because competition is both energizing and creative, it will continue to be a threat to those unable to withstand the pace. Walmart has driven no one out of business; those who fell by the wayside did so because of their inability to innovate competitive responses to Walmart. As we watch the winter Olympics, we might ask whether the gold medal winners were able to “destroy” their less-talented competitors.

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