Schumpeter maintains that recessions provide businesspeople with incentives to advance technologically.

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Schumpeter's theory of creative destruction argues that recessions allow for outdated and inefficient businesses to fail, making room for new and innovative businesses to emerge. This process is driven by entrepreneurs who seek to introduce new technologies and methods to gain a competitive advantage, ultimately leading to economic growth and development.

Schumpeter Maintains That Recessions Provide Businesspeople with Incentives to Advance