Prosperity And Depression: The Consideration Of Economic Cycle And Economic Development

From a historical experience, we can find that the normal economic develops along a cyclical trace. Economic development is always ups and downs.for example, the industrial revolution had brought the Western capitalist countries great economic development, but eventually ushered in the twentieth century, the Great Depression of the thirties the economy. China since the early founding of the PRC, economic development has gone through 10 cycles,especially since the reform and open policy, the Time-Horizon of economic cycle groes longer, and economic suffers more and more serious risk of relative overproduction crisis. Although China is under the guidance of Marxist theory, embarked on the road of communism, but because of the level of productivity is far less developed, there is still a big gap between the current primary stage of socialism society and the ideal communism society, which reflects the economic development of is that China is still subject to cyclical economic crisis. Therefore, the purpose of this article is drawing on Marx's theory of the economic cycle, from the wealth of the movement point of view, summarize the general pattern of economic operation, and then points on two consideration include the promotion of uniformity of distribution of wealth and promotion of mode of production of material wealth.Since the twentieth century, Western capitalist countries sprang up lots of economic cycle theories.such as Jevons's agricultural cycle theory, Pigou's psychological factors theory, Hayek's monetary overinvestment theory as well as Schumpeter's innovation cycle theory. All These theories mainly begin from external factors to study the causes of cyclical economic fluctuations. while Marx was keen insight into the economic growth in real terms, that even if the exclusion of all external factors, in the role of the basic contradictions of capitalism, the economy would still be running extended follow periodic trajectories. Marx suggested that the basic contradiction of capitalist relations of production are the root causes of the outbreak of periodic crises, while the fixed equipment of the update is the material basis for cyclical economic fluctuations.A complete economic cycle, include "depression, progressive activity, prosperity, overproduction, crisis and stagnation," several states, and can be divided into "economic upswing" and "post-crisis recession period" in two stages.In the period of economic upswing, through wealth creation, distribution and consumption,the weath controlled by labors accumulates constantly. As part of the accumulation of wealth is used for the expansion of consumer spending, thereby stimulating production and increasing employment in the society, employment increased a further boost to the accumulation of wealth in the hands of workers, leading to economies of scale continued to expand. This is the virtuous circle of economic prosperity. With the continued accumulation of wealth, social relations of production constraints on the economy become increasingly clear that the end will inevitably lead to crisis. Marx put forward the basic contradiction of capitalism is the leading causes of the crisis. The private ownership of led to polarization between rich and poor along with the increasing accumulation of social wealth expanding. In pursuit of greater profits, Capitalists compete with each other,that will blindly expand production,and the same time, in order to cost savings, Capitalists hold down labor's wage as much as possible. When the overproduction of the intensification of conflicts to a certain level can lead to full-blown crises. With the gradual consumption of commodity stocks, the economy began to restore vitality, and then entered the next round of economic cycle. This is the general pattern of economic development.Japanese economy strictly adhere to the general pattern of economic development after World WarⅡ. Between the short span of ten years after World WarⅡ, the Japanese economy would return to its pre-war peak of the state, which depends on four factors, including access to the U.S. orders for big munitions, infrastructure investment, technology transfer and investment in education. These four points are all factors that point to a core, which is to increase employment, promote the production of social wealth.From the general pattern of economic development point of view, In the period of economic upswing, increase employment and promote and distribute wealth evenly is to speed up a virtuous cycle of economic and effective help. Japan is focused on these two approach, so in the economic recovery has achieved a remarkable effect. However, the rapid economic rise means that the crisis will quickly come. In 1980s, Japan has accumulated a great deal of social wealth.Because of international trade, the relative overproduction crisis can be temporarily eased, but the crisis in the field of financial speculation is inevitable. Japan's current economic crisis is precisely because of the financial markets arising from the bursting of a huge bubble-led.based on the current reality of China's economic construction, this article put forward about two points:First, to promote equitable distribution of wealth. Equitable distribution of wealth is not only able to maintain a virtuous economic cycle, but also can reduce the risk of crisis and mitigate the crisis of the broken ring. The promotion of an effective mechanism for equitable distribution of wealth is the elimination of profession barriers to entry, through the free movement of labor and the means of production, the excess profits will be smooth out. Second, is to promote the transformation of modes of production of material wealth. Adhere to the concept of sustainable development, and build the platform of spiritual wealth producting and consumption。...