AwesomeSheep48: /* Depression */

2025-07-13T14:31:40Z

Depression

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	=== Depression ===		=== Depression ===
	During a depression, industrial production, prices, and international trade are low. Capitalists either destroy [[Commodity\|commodities]] or sell them at low prices. They increase [[exploitation]] of the [[Proletariat\|workers]] to create profitable commodities at low prices.<ref name=":0" />		During a depression, industrial production, prices, and international trade are low. Capitalists either destroy overproduced [[Commodity\|commodities]] or sell them at low prices. They increase [[exploitation]] of the [[Proletariat\|workers]] to create profitable commodities at low prices.<ref name=":0" />

	=== Recovery ===		=== Recovery ===

Ledlecreeper27: Created

2023-05-27T21:01:21Z

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'''Economic crises''' are periodic economic events that interrupt [[Capitalism|capitalist]] reproduction. Unlike earlier crises under [[feudalism]] or [[slavery]], which resulted from underproduction caused by [[War|wars]], [[Epidemic|disease]], or natural disasters, capitalist crises result from [[overproduction]]. Capitalist crises cause mass [[unemployment]], ruin the [[petty bourgeoisie]], and cause bankruptcy for [[Bourgeoisie|capitalists]]. They occur once every eight to 12 years.<ref name=":0">{{Citation|author=Economics Institute of the Academy of Sciences of the U.S.S.R|year=1954|title=Political Economy|chapter=Economic Crises|page=|pdf=https://revolutionarydemocracy.org/archive/PoliticalEconomy.pdf|city=London|publisher=Lawrence & Wishart|chapter-url=https://www.marxists.org/subject/economy/authors/pe/pe-ch17.htm|mia=https://www.marxists.org/subject/economy/authors/pe/index.htm}}</ref>

== History ==
Crises of overproduction that affected a few industries began in the late 18th century. The first crisis to affect a country's entire economy happened in [[United Kingdom of Great Britain and Ireland (1801–1922)|Britain]] in 1825. More crises began in [[Panic of 1825|1825]], [[Panic of 1837|1836]], [[Panic of 1847|1847]] (the first global crisis), [[Panic of 1857|1857]], [[Panic of 1866|1866]], [[Long Depression|1873, 1882, 1890]], [[Panic of 1901|1900]], [[Panic of 1907|1907]], 1920, [[Great Depression|1929, 1937]], and 1948.<ref name=":0" />

== Stages ==

=== Crisis ===
A crisis begins when overproduction reaches its peak. [[Price|Prices]] drop rapidly and the [[Stock market|stock exchange]] crashes, causing bankruptcy and decreasing production. [[Wage|Wages]] and [[employment]] drop, and a society loses much of its [[productive forces]].<ref name=":0" />

=== Depression ===
During a depression, industrial production, prices, and international trade are low. Capitalists either destroy [[Commodity|commodities]] or sell them at low prices. They increase [[exploitation]] of the [[Proletariat|workers]] to create profitable commodities at low prices.<ref name=":0" />

=== Recovery ===
After the depression, businesses recover and increase production. Prices and profits increase.<ref name=":0" />

=== Boom ===
The boom is the peak of the economy and occurs just before the next crisis. Merchants buy as much as they can before prices increase more.<ref name=":0" />

== References ==
[[Category:Economics]]

Economic crisis - Revision history

AwesomeSheep48: /* Depression */

Ledlecreeper27: Created