The Next Global Economic & Financial Crisis is Just Around the Corner

Abstract

The core essence of the economic/financial crisis is the imbalance between desire and ability. There is a causal relationship among the contradiction between desire and ability, the imbalance between supply and demand, the formation and accumulation of material wealth and value wealth, and the economic/financial crisis. Since the imbalance between desire and ability is inherent, so is the contradiction between supply and demand. Apart from unconventional measures such as large-scale warfare, the most effective way to counter the economic downturn is to curb the ever-widening wealth gap to eliminate the contradiction between supply and demand. The outbreak of the economic& financial crisis is almost inevitable if the inherent contradiction between supply side and demand side cannot be effectively eliminated. Economics should not be divorced from common sense. Everything else that goes against this common sense is nonsense.

Keywords:

• Economy growth
• Economic recession
• Supply-demand matching
• Causal relationship

JEL codes:

• E60
• N10

Notes

1 The reasons for the two world wars are so complicated that only the deep-seated reasons for the economy are mentioned here.

2 In fact, it did not really act quickly to delay the crisis–the World War II broke out.

3 The US could eliminate these debts by financial crisis. This is the content of finance economics, not to be discussed here.

4 A large amount of material wealth was exported to foreign countries at cheap prices.

Additional information

Funding

This research is supported by the research fund from “Collaborative innovation center for Transformation and Upgrading of Micro, Small and Medium Enterprises, Zhejiang University of Technology.