Research On The Theory Of Reasons For Economic Crises——The Fission Of Demand And Supply* A New Theoretical Creation And Prove

Since the breaking-out of the first economic crises with overall overproduction in 1825, the periodic economic crises with overall overproduction have been disturbing the performance of market economy. In the past many western economists made a lot of researches on the reason of the periodic economic crises. However, up to now, they yet did not make agreement on the reason of the periodic economic crises. While affirming the great contributions of western mainstream economic schools and Marxist economic schools to the analysis of the reason of periodic economic crises, the paper points out the limitations of most western economists and Marxists in analyzing the reason of economic crises. The former only stresses on the quantitative analyses of the surface reason which causes the disequilibrium of total quantity of demand and supply in the economic performance while the latter only stresses the institutional analyses. On the basis of the above analyses, the paper, from the angle of the fission of demand and supply, puts forward the theory of the fission of demand and supply which explains the reason of periodic economic crises with overproduction in the market economy, and systematically analyses the procedure of three quantitative fissions of demand and supply in the simple commodity economy caused by the characteristics of commodity production, the form of circulation and commercial credit, and exposes the basic reason and factual restrictive factors for the first economic crises with overproduction in the simple commodity economy caused by the three fissions of demand and supply. Then the paper further explores the procedure of the fourth qualitative fission of demand and supply caused by the factor of the performance mechanism with the characteristics of capital production in the market economy and exposes the final formation of the reason that causes the occurrence of economic crises with overproduction because of the procedure of the fourth fission. That is, the subject of demand and supply fissions into the subject of demand and supply with personification of capital, which makes the limitless extension of production with the internal motive force; the motive and purpose of demand and supply fission into the pursuit of profit maximum, which makes the limitless extension of production become an inevitable trend; the reverse quantitative fission of demand and supply caused by the capital accumulation, which continuously reinforces the extension of production and the restriction on the consumption demand; the market system and mechanism become the performance system and transition mechanism of breaking-out of economic crises; the failure of market adjustment leads directly to the distortion of market relations and the serious disequilibrium of the total quantity of social demand and supply. The factors causing the economic crises with overproduction that is also due to the deep fission of the relationship of the demand and supply in the market economy become the internal reasons which cause the periodic economic crises with overproduction in the market economy.With the fourth qualitative fission of demand and supply in the market economy and the development of the industrial production, the development and mature of a set of the external factors and conditions such as the limitless extension of production, the reverse development of demand and supply, the credit inflation, the asymmetric information, government failure have been derived therefrom. In the interaction of the internal and external factors, the external factors stimulate the internal factors and, through the multiplying function of the internal factors, make the periodic economic crises with overproduction in the market economy inevitable and realistic. In the transition period, with the change and the improvement of economic system and the establishment of market mechanism, China has had the general characteristics of market economy, namely, the capital and the capital production. The paper, from the two aspects of the general factors f...