Robert Higgs explains it so eloquently in Creative Destruction—The Best Game in Town, although he credits Joseph A. Schumpeter with coining the phrase and for emphasizing that a market isn't only creative but also destructive. It creates winners and losers.
There will be those who have skills no longer in demand or who labor in a declining industry, region or production method who will face hardship as the market moves forward. Everyone is better off if they adapt to the changes and seek employment in another industry, move to a better location or develop different skills. Unfortunately, many of them want the government to intervene to maintain the status quo. However, if the government does that it slows down the whole process.
Therefore, pain is an important part of the process. And it's a great motivator. On the other hand, if a planned government economy is allowed to prevail then everyone suffers.
This is a mere amateurish summary of Mr. Higgs' article. Read the whole thing first hand at Bastiat.Mises.org or Blog.Independent.org.
Happy Labor Day!
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