Schumpeter was very aware of these long wave trends but felt that there was a more sociological activity at work. Quite apart from the fact that production systems run up against the limits of a given paradigm, as factory assembly did before supply chain management, companies trend towards monopoly. Instead of competing, they become cartel like (Germany's path to the second world war was funded by large industrial cartels!). Cartels charge monopoly prices and become too comfortable, even too cynical. They become counter-productive.