What is an economic crisis Causes, consequences and solutions to economic crises Why are they cyclic

A concrete manifestation of the cyclical nature of economic crises. Under capitalism, economic crises erupt every few years and are an economic phenomenon that repeats itself in cycles. From the beginning of one economic crisis to the beginning of another, it constitutes a cycle of capitalist reproduction.

The cyclical movement of capitalist reproduction in the cycle of crisis-depression-recovery-upsurge is called the cyclical nature of capitalist reproduction.

According to the analysis of the bipolar world theory, the economic crises in the two stages of internal transformation and external expansion of the capitalist world system are ostensibly caused by insufficient effective demand.

However, the reasons for the lack of effective demand are different, the lack of effective demand in the period of internal change is due to the relative poverty of people, and the lack of effective demand in the period of external expansion is due to the relative wealth of capital, the former is due to the lack of domestic effective demand and external stress, and the latter is due to the lack of international effective demand and internal stress.

The root cause of the economic crisis was that in an environment of economic freedom, the productivity of the United States increased dramatically, while the standard of living of the people did not rise in parallel. The immediate cause of the economic crisis was the contradiction between production and the sale of spinal fibers, and if this contradiction developed, it led to overproduction. This overproduction has exceeded the ability of the population to pay relative to the purchasing power of the general population.

This is the direct cause of the economic crisis.

The fundamental cause: the basic contradiction of the capitalist system, that is, the contradiction between the socialization of production and the private appropriation of the means of production.

Direct cause: The contradiction between production and sales in the whole society leads to a relative overproduction.

Specific reasons: the gap between the rich and the poor is too large, excessive speculation, instalment payments and bank credit are overflowing.

The economic crisis of 1929 occurred after the formation of the world as a whole. At this time, the world economy had finally taken shape, and the economies of various countries were interdependent. However, after the outbreak of the economic crisis, the major capitalist countries still adopted the previous self-interested approach, beggar-thy-neighbor, and attempted to transfer the crisis to other countries, resulting in tariff wars, currency wars, and war of tariffs.

These policies have plunged the world economic order into chaos, made it impossible for the world economy to proceed normally, greatly worsened the external environment of the economies of various countries, and deepened the extent of the crisis.

Hello, the main reason for this is the so-called structural crisis. Among them, the imbalance of industrial structure is a concentrated manifestation. The industrial structure directly leads to contradictions in the employment structure and product structure, resulting in economic chaos and crisis.

If the large-scale readjustment of the economic structure is not handled well, it may also lead to an economic crisis of overproduction. Second, it is caused by the contradiction between production and consumption. In particular, there is a serious backlog of important means of production for a long time, which may trigger a crisis if it spreads to other fields.

The third is caused by the failure of macroeconomic regulation and control policies and measures. ** Monetary policy, fiscal policy, industrial policy, and income policy used for macroeconomic control, if used incorrectly, will also induce economic crisis. Fourth, when the world economy is in a recession or serious problems occur in a certain country or in a certain field, it may trigger a regional economic crisis or even a world economic crisis.