What is the theory of crisis?

Crisis theory is the theme of a study in the Marxian economy focused on the causes of the economic crisis, based on discussions on crises in the works of Karel Marx and his contemporaries. In his criticism of capitalism, Marx discussed the tendency of the boom cycles and the bust and suggested a crisis theory rooted in the failure of capitalism as an economic system. Some theorists agree with Marx, while others deal with the theory of crisis from other perspectives and consider it an interesting topic of discussion, although they think it is eventually incorrect. Since the core of the capitalist system is stable and ideally increases profits, the decrease in their rate may initiate a domino effect throughout the system. Crisis theory includes its discussion on the degree of profit and the role it plays in capitalist economies. Marx claimed that if workers do not check demand and means of production, the fall of profit is inevitable. This in turn creates even more declines because unemployed workers have lower demand for goods and SLThe snake, which leads to insufficient consumption. There is a snowball effect and can cause an economic crisis. Crisis theory examines this chain of events and the way it contributes to economic busts.

Some supporters of the Marxian economy believe that capitalism is not sustainable by its very nature, partly due to the detection of the theory of the crisis. This theory suggests that the economies will be imprisoned in a loop boom and bust, causing the failure to be inevitable. Within this system, individuals may be able to benefit both from the decline and the rise, but society as a whole may suffer. Study of the theory of crisis also, including Discussions on interventions to repair failing markets, such as government aid in the form of nationalization.

economists can study the theory of crisis and other aspects of the Marxian economy during their training, although they will not accept this approach to economics. May be important pCoach competitive economic theory and logic behind them. This information can help scientists to analyze various schools and influences that can have political systems on the economies. When government officials enroll in the collection of the Marxian economy and use it as the main philosophy of their fiscal decisions, it will have a clear impact on the economy.