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Originally Posted by BlackCrayon
Not all of the time but yes, it does happen. Look at the big 3 american auto makers. The success of asian auto comapanies and the big 3's lack of innovation made them almost crumble into nothing. Wealth is created but more often than not it seems to be re-directed. Something comes up and replaces something else and so on. The ipod and mp3's made cd manufacters hurt..you can go on and on. Its almost hard to name any product that didn't make another products sales suffer in some way.
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You seem to be confusing a business with an economy. if there is a town with one hardware store, clearly another can come in and run it out of business. In terms of an economy, economies grow and wealth is created. It is not redistributed as you continue to suggest, it is created and the size of the economy grows because there is steadily more winning than losing. There is always going to be winners and losers in a free market. That doesn't mean that an economy is a zero sum system, because it isn't.