The reasons for the economic crisis.

Modern society is doing its best to improve the level and the conditions of their lives.It is possible to achieve with the help of stable economic growth, not only by a single state, but each of the world's countries.History shows that each of the periods of prosperity ending time of economic instability.

flows of the economy

Many global minds note 2 state, which flows into the economy of each country from time to time.

  • balance.It is characterized by a balance of social production and public consumption.In the market, these two concepts are known as supply and demand.The process of economic growth is characterized by visual motion in a straight line.In simple words we can say that the output increases in volume in proportion to the factors of production.

  • disequilibrium.It is a kind of crisis of overproduction in the social scale.Normal communications are broken, therefore, as a proportion of the economy.

What economic crisis?

economic crisis can be called a complete imbalance in the economic sector for which the inherent losses and ruptures of harmonious relations, both in production and in market relations.Translated from the Greek concept of «krisis» interpreted as a turning point.It demonstrates a radical deterioration of the economic condition of the state, for which the inherent production decline and the gap of industrial relations, the bankruptcy of a large number of businesses and rising unemployment.The fall of the economy leads to a reduction in living standards and the deterioration of the welfare of the entire population.The crisis associated with global developmental disorders.One of the formats of the phenomenon - the systematic and massive accumulation of debt and the inability of people to repay them at the optimum time.The main reasons for the economic crisis, most economists associated with an imbalance in supply and demand pair of goods and services.

Surface causes of economic crises

Global prerequisite to the emergence of global financial crisis may be called the contradiction between labor and non-productive type of production themselves or between production and consumption, between the system and the outside world.When an imbalance of production and non-productive forces violated commodity-money relations.The interaction of the system and the environment in the event of disasters which can not be controlled, there is a failure in the functioning of society.The reasons for the economic crisis, experts associated with the deepening and development of cooperation, specialization, exacerbating the differences between the management and production.Even a slow shift from commodity production to the co-operation and manufacture has pushed the local manifestation of the crisis.In most situations, the local crises are resolved at the expense of internal resources of a self-regulating structure.

Background and signs of crisis

reasons that lead to economic crises, have a great influence on the demand for currency, an impact on the indices that are widely used for the analysis of trading.The world economy from time to time faced with an imbalance.The phenomenon occurs every 8-12 years.This manifests itself in a wide range of problems:

  • difficulties with the sale of goods;

  • sharp disruptions in economic equilibrium;

  • decline in production;

  • rising unemployment;

  • decline in investor activity;

  • dislocation lending.

All these complex problems in history have been called a crisis of overproduction.

big role in the formation of the unfavorable situation in the country play money, but only if they are seen as a means of communication and a tool for making payments.From history it is clear that the imbalance of the economy in countries around the world began to appear only after was introduced monetary and commodity economy in the form of a complex with capitalism.That is the contradiction of the state system did downs in the life of a simple necessity.The underlying premise of the phenomenon - it is a conflict between socialized production and private capitalist ownership.Production conditions and conditions of sale of the goods differ substantially due to the surplus value.Release of large volumes of production prevents the productive power of society, and the implementation of the issued goods - proportionality areas of society, which is not determined by the needs of people and their ability to pay.The main controversy lies in the fact that the world steel production to produce many of the goods that the world community is simply unable to consume all of them.

role in the formation of the crisis of capitalism

Many causes of economic crises linked directly to capitalism, as his basic nature is based on the infinite expansion of production.Aiming at the systematic enrichment stimulates a constant release of more and more new products.There is a modernization of equipment and introduction of new technologies in all sectors of activity.Such active measures for the prosperity of the industry are essential to companies and large enterprises to withstand a fairly high level of competition.The need to reduce costs in the production in the active combat competition makes most entrepreneurs strictly limit wage growth.This leads to the fact that the sharp increase in the production is much greater than the expansion of private consumption.To smooth the conflict between production and consumers to solve the major issues of the economy, the labor market to ensure optimum quality of the labor force, the state goes to global social spending.The current crisis can be called a systematic consequence of credit expansion.

Species crises

world crises can be called a temporary period of acute confrontation between the economy of the state and private entrepreneurs.It is the company reflects the most acute problems in the system.Among them stands out:

  • collapse of the financial system;

  • overproduction and underproduction;

  • crisis sales of goods and services;

  • crisis in relations between counterparties in the market.

All this reduces the solvency of the population, therefore, entails the bankruptcy of many successful companies.The crisis on the level of macroeconomics is characterized by a sharp decline in GDP and a fall in business activity.Inflation grows in exponential direction, unemployment increases and the standard of living is significantly reduced.Fraught with sad consequences of economic issues related to the financial crisis of the subsystem.This is the gap between the requirements of a new economic standard of living and the most conservative financial institutions.Economic crises, the causes and consequences of which are classified for many years, can emerge from a small social and economic problems.The reason for this - the presence of close links between elements of the system and subsystem processes.Local complexity rather quickly cover the entire system, and it is impossible to eliminate certain difficulties in the event of crisis prerequisites for the entire system.The reasons for the global economic crisis can be very diverse, but the phenomenon is cyclical in nature.If you do the visualization of the economy, the movement will be carried out in a spiral.

main phase of the crisis

history of economic crises (with the long-term researchers and eminent scientist) allowed to allocate the development of each of the economic crisis in four main phases:

  • veiled stage.This is the period of origin of the problems.The true causes of the economic crisis have already taken place, but they are not pronounced.The period has bright development of production and prosperity of the country, which has reached its peak.

  • accumulation of contradictions.In this period the fall in social dynamics.Begins to manifest crisis processes that were invisible in the first stage.

  • Temporary stabilization stage.This is a temporary lull in the bud, from which all large-scale economic crisis.The causes and consequences can be devastating.Society is on the brink of survival.Society is stratified according to the activity of citizens.Bright seen two groups of people.Some quietly outstay difficulties in the hope that it will soon be over, others - are active to improve their standard of living, seeking a way out.

  • recovery.Despite the fact that the world economy is experiencing a downturn, people have adapted.This becomes predosylkoy stabilize most of the local subsystems.At this stage, the main program of the release of their situation, have already been developed and are ready for implementation.The optimistic mood in society enhanced.Social dynamics improved.

US influence on the formation of world crises

history of economic crises shows that the negative public sentiment may result from problems encountered in the United States.It is obvious that all the world's economies are interconnected and it is a key element in favor of America.The weight of the country's GDP in the economy of the planet is more than 50%.On the state accounts for about 25% of oil consumption.Exports of most of the world is focused on the United States.

At the heart of the American economy is a complex financial system, which, unfortunately, causes and forms of world economic crises.By the way, recently became the country's financial system to function more independently.This core assets are extracted not from industrial and manufacturing companies, and are earned by currency manipulation.Therefore, formed a kind of "soap exchange bubble", the amount of which is many times the volume of products produced by the industrial sector.There are experts who believe that the causes of the economic crises are not related to the mortgage meltdown in the United States.The phenomenon only was the impetus that led to a change in the economy.

Lending - a step towards a crisis

In accordance with the laws of the market economy, demand creates supply.At the same time due to the systematic overproduction of goods managed to find out that the proposal may give rise to the demand that will be actively supported by credit facilities.When banks continue to lend active citizens, systematically reducing their interest rates and offering favorable conditions for cooperation, the funds into the hands of insolvent people.Mass outstanding payments lead to the fact that the collateral property in particular, begins to sell.Unfortunately, the increase in supply and demand reduction did not allow the bank to recover their assets.It falls under the blows of the construction sector, and the lack of liquidity becomes the primary cause of the crisis in quite the real economy.

despite the objective of lending, as a prerequisite to the formation of a crisis, the causes of the phenomenon are very contradictory.Influencing factors systematic identical appearance at different time intervals occurs differently.Moreover, for each country, characterized by its own individual characteristics of development.Most experts connects cyclical phenomena from a scientific and technological development of States.The active part of physical capital for ages 10-12 years.This leads to the need to update it, which is a secondary signal for the revival of economic activity.The role of the impetus for the development of the state can play in the implementation of new equipment and new production technologies that are directly related to lending.This is the basis of all of the economic cycle.With the passage of time, the timing of aging capital began to shrink.In the 19th century, the period was reduced to 10-11 years later to 7-8 years.After the war, manifestation of the crisis of all sizes began to notice every 4-5 years.

little about the crisis in the world's countries

Almost every developing country is facing a crisis.They are an integral part of progress.Stability and imbalances in the economy simply inseparable.Before capitalism, the problem arose as a result of underproduction, today the complexity associated with overproduction.From the first economic crisis faced residents of England back in 1825.During this period the country began to dominate capitalism.The next encounter problems Britain and America in 1836.Already in 1847, the crisis engulfed almost all European countries.From the beginning, the first dawn of the capitalist deep decline in the world belongs to 1857.Great difficulties in the economy of the world can be observed from 1900 to 1903. As well as in 1907 and 1920.One it was only a preparation for the most difficult period in the history of the world.Common Causes of the economic crisis of 1929-1933 led to a decline in all sectors of the global economy.Only in the US went bankrupt not less than 109 thousand companies.Depression after the recession had protracted.This was not the end.After 4 years of disasters, after a short period of rehabilitation, he has entered a new decline, successfully leaping recovery stage.At this time, the volume of world industrial production declined by more than 11%.In the US, this figure reached 21%.The number of vehicles produced fell by 40%.Developing and growing problem interrupted by the Second World War, which lasted from 1939 to 1945.Completion of hostilities marked by a local economic crisis, which hit not only in America but also in Canada.In the US, industrial production fell by 18.2%, Canada - 12%.Capitalist countries cut production by 6%.

next global crisis will not have to wait long.The capitalist countries began to struggle with setbacks in the economy in the years 1953-1954 and in 1957-1958.One of the most difficult moments in the evolution of humanity historians refer to the 1973-1975 biennium.A distinctive feature of this time period in history - a high level of inflation.We were hit the most important industries.Issues touched upon the energy industry, raw areas, currency systems and agriculture.