With the further development of capitalist economy after the first industrial revolution, the basic contradiction between its socialization of production and private possession of means of production has become increasingly apparent, which eventually led to the outbreak of economic crisis.
the first large-scale economic crisis began in 1825, first in Britain, the starting country of the first industrial revolution, then spread to the whole of Europe in the 193s, and in the 184s, it became a disaster, and the industrial scale of the whole of Europe was reduced by two-thirds.
The human society is at a loss, and the social science field is unprepared for this, and no scholar can come up with any solution. On the study of economic crisis, human society has not made much progress until today.
Extended information:
In Das Kapital, Marx wrote: The market economy cannot eliminate the root causes of economic crises, so economic crises break out periodically. This periodicity of economic crisis makes capitalist reproduction also show periodicity.
this cycle includes four stages: crisis, depression, recovery and upsurge. Crises often break out when the capitalist economy is most prosperous, and various contradictions of capitalism reach the sharpest degree at this time.
The crisis first appeared in a certain link of commodity circulation, then quickly spread to various departments, and finally led to serious chaos in the whole social and economic activities. Crisis is the decisive stage of the economic cycle, the end of the last economic cycle and the starting point of the next economic cycle.
Reference: Baidu Encyclopedia-British Economic Crisis in 1825.