This is the Cato Daily Podcast for Tuesday, February 11th, 2014.

I'm Caleb Brown.

How we Deal with Failure can tell us a lot about how likely we are to succeed.

Megan McCardle writes in her new book, The Upside of Down,

that failure has the ability to teach us as individuals and groups. And the painful lessons from

failures big and small are perhaps the most valuable lessons we can learn.

We spoke last week.

The idea is basically beyond creative destruction.

I mean, we all know creative destruction in the process by which companies and even people and ideas

in a capital of society are replaced by something newer and even better.

It's maybe bad for that company, but great for society

as the whole.

And that is really important.

You know, I get into that, dive into that straight

in early chapters in my book because it's such

an important concept.

But it's not just enough to let things fail.

It is not enough to say, okay, we're going to let this company go to business.

We're going to let this individual lose their job rather than trying to say as France might buy up a big

industrial concern and keep it all going exactly the way it was. It's great that

America doesn't do that, but it also matters a lot what happens after something has failed and we tend to

give that short drift we tend to forget about all of the institutions and the

...