What is the principle of the economic crisis? What is the essence of the economic crisis

Causes of the economic crisis:

The root cause: the contradiction between the socialization of production and the private appropriation of the means of production.

Other reasons: Mistakes in economic policy.

Raw materials are in short supply, especially in the crisis.

Natural disaster. Consequences of globalization.

Mistakes in financial policy.

The consequences of the economic crisis could be:

Social unrest. National economic regulation and economic recovery.

Coup. War.

The main manifestations of the economic crisis are:

There is a large surplus of goods and sales are stagnant; Production has dropped sharply, enterprises have understarted or even closed down, and the number of unemployed workers has increased dramatically; Enterprises' capital turnover is ineffective, money is in short supply, interest rates are rising, the credit system is seriously damaged, and banks have declared bankruptcy one after another.

In layman's terms, the wages of workers are low, and social wealth is concentrated in the hands of a small number of people, resulting in the inability to sell the products produced by the enterprise, that is, overcapacity, and the enterprise cannot be sold out, and the company's funds cannot be turned over, and it will be in crisis. . .

The economic crisis is the crisis of overproduction, which is manifested as: on the one hand, there are too many products, they cannot be sold, the capital chain of the factory is interrupted, and even it is closed. increase in the number of unemployed; On the other hand, ordinary people live in poverty and want to buy but can't afford it.

In this vicious circle, the bad side is expanding one by one, expanding from one industry to another, from one region to another, and even affecting the whole society.

In order to prevent the economic crisis, it is required to act in accordance with the laws of the economy, take the initiative to eliminate the industry bubble, and take preventive measures.

The root cause is the contradiction between supply and demand.

The ostensible cause of the economic crisis is the lack of demand, which leads to sluggish consumption, and the deeper cause is the disparity between the rich and the poor.

There is a common-sense economic principle that is easy to be ignored by people, production and consumption want to achieve a state of equilibrium, theoretically it must be how much everyone earns and how much money per mu of liquid, or do the same proportion of savings, if someone only makes money and does not spend money, or some people make more money and spend less, some people make less money and spend more, supply and consumption will not be able to achieve a balanced state, and the liquidity of capital will continue to decline.

The end result of this is that a small number of people occupy a large amount of wealth, while the majority of people are in a state of lack of money or even debt, which will lead to the eventual stagnation of consumption and the depletion of capital liquidity, which is the lowest cause of the economic crisis.

For example, a rich man with $100 million and a super-rich man with $10 billion have basically the same level of consumption, and the rich will not increase their consumption at the same time because of the increase in assets.

On the contrary, the desire of the rich to consume will be even lower, because consumption is no longer the first pursuit for them. In fact, the main consumer group has always been the general public, and it is more accurate to say that the main consumer has always been the middle class, not the top rich who hold a lot of wealth, let alone the poor.

There is a saying that they believe that the money earned by the capitalists will continue to be invested in reproduction through investment, and the process of investment is equivalent to a kind of consumption. Such a statement is somewhat deceptive, the reinvestment of capital is indeed a kind of consumption, and it will also increase jobs, but this investment is still aimed at asset appreciation and earning more profits, which is essentially different from real consumption, which will only increase the gap between the rich and the poor in the end.

According to the above analysis, the economic model of the pan-capitalist society itself is the cause of the economic crisis, which is also the fundamental reason why the pan-capitalist economy and society cannot escape the cycle of economic crisis.

1. Essential characteristics.

In the process of economic development, the social and economic chaos that periodically erupted.

2. Root cause.

Overcapacity is the essential feature of the economic crisis, and relative overcapacity refers to the appearance of a surplus of goods produced by society relative to the effective demand of consumers, rather than an absolute surplus compared with the actual demand of consumers.

3. Periodical characteristics.

The cycle of reproduction proceeds to make the process of economic crisis cyclical. The typical reproduction cycle consists of four stages: crisis, depression, recovery, and upsurge.

A crisis is the end of the previous cycle and the beginning of the next. In the depression phase, production comes to a standstill while preparing for the recovery phase. In the recovery stage, the contradiction between production and consumption has been further eased, and social production has gradually recovered and further developed, so that the economy will have a prosperous scene and form a high upsurge.

The upsurge has caused the accumulation of various contradictions in the economy to a certain extent, and a new round of economic crisis has erupted. The material basis of the cyclical nature of reproduction is the renewal of fixed assets. Large-scale renewal of fixed assets will expand production capacity, cause production surges, and lay the material foundation for the next overproduction crisis.

The essence of an economic crisis is a crisis situation caused by the old overproduction and oversupply, the saturation and insufficiency of effective demand. If we want to get out of the economic crisis and recover the economy, we need to appropriately increase effective demand; At the same time, it is necessary to develop and create new productive forces to overcome the economic crisis once and for all.

The root cause of the outbreak of the economic crisis is the overcapacity of the whole society, there are too many commodities in the whole market, and there are too few buyers, which will lead to a drop in the price of commodities, but once the price of commodities falls, it means that profits are reduced, and even the producer can not make profits, and there is a huge contradiction between production and consumption.

The essence of an economic crisis is imbalance and instability in the economic system. This imbalance can be caused by factors such as market fluctuations, policy changes, financial risks, resource shortages, technological advances, etc. Economic crises are usually manifested by a sharp decline in economic activity, rising unemployment, the closure of companies, and the collapse of financial institutions.

The solution to the economic crisis requires the joint efforts of enterprises, businesses and individuals to adopt appropriate policies and measures to restore economic stability and growth.

1. Essential characteristics.

Overcapacity is the essential feature of an economic crisis, and relative overcapacity refers to the appearance of a surplus of goods produced by society relative to the effective demand of consumers, rather than an absolute surplus compared to the actual demand of consumers. The possibility of an economic crisis is caused by money as a means of payment and circulation.

The reason for the outbreak of the economic crisis is the basic contradiction in the production of individual enterprisesThe economic crisis is cyclical in nature, which is determined by the stage of the movement of the basic contradiction in the market economy. The economic crisis has caused enterprises to close down, production has declined, and the contradiction between supply and demand has been alleviated, and with the recovery and upsurge of the economy, the contradiction has intensified again, which will inevitably lead to the outbreak of the economic crisis again.

2. Root cause.

The root cause of the economic crisis of capitalism is the basic contradiction of the capitalist mode of production, that is, the contradiction between the socialization of production and the capitalist private appropriation of the means of production. Socialization of production refers to the socialization of the production process itself, that is, the process of transforming from scattered small producers to large-scale social production.

3. Periodical characteristics.

In the recovery stage, the contradiction between production and consumption has been further eased, and social production has gradually recovered and further developed, so that the economy has seen a prosperous scene and formed a high upsurge. The upsurge has caused the accumulation of various contradictions in the capitalist economy to a certain extent, and a new round of economic crisis has erupted.

The first economic crisis occurred in Britain in 1825, and then there was basically an economic crisis every ten years, and there were four main economic crises that belonged to the world: 1929, 1933, 1973, 1975, 1980, 1982, and 2008.

The period from 1929 to 1933 was the most protracted, deepest and most severe cyclical world economic crisis in the history of capitalist economy. It first broke out in the United States, and on October 24, 1929, the New York market ** in one day**, and the great crisis began. This was followed by bank failures, a decline in production, the bankruptcy of factories, and the loss of workers' jobs.

The Great Crisis spread rapidly from the United States to the whole of Europe and the whole world except the Soviet Union, and was the largest, longest-lasting, and most profound economic crisis that human society has ever encountered.

The capitalist world economic crisis of 1973-1975 was the fourth capitalist world economic crisis after World War II and a world economic crisis triggered by the first oil crisis.

Causes of the economic crisis.

1. Economic structural imbalance: the so-called structural crisis. Among them, the imbalance of the industrial structure is a concentrated manifestation, which can directly cause contradictions in the employment structure and product structure, resulting in economic chaos and the outbreak of crises.

If the large-scale adjustment of the economic structure is not handled well, it may also lead to an economic crisis of overproduction;

2. The contradiction between production and consumption: in particular, the long-term backlog of important means of production is seriously excessive, and once it spreads to other fields, it may trigger a crisis;

3. Caused by mistakes in macroeconomic regulation and control policy measures: Monetary policy, fiscal policy, industrial policy, etc., which are used for macroeconomic regulation and control, will also cause economic crises if they are not handled properly;

4. When the global economy is not doing well or serious problems occur in a certain country or a certain field, it may lead to a regional economic crisis or even a world economic crisis.