3 Major Criticisms of Schumpeter’s Theory of Trade Cycle
The following points highlight the three major criticisms of Schumpeter’s theory of trade cycle. The criticisms are: 1. Assumption of Full Employment 2. Innovations Alone Cannot Generate Trade Cycles 3. It Ignores Other Influences on Expansion and Recession. Schumpeter's Theory Criticism # 1. Assumption of Full Employment: The Schumpeter’s theory is based on the assumption of full employment of resources [...]