/leftypol/ - Leftist Politically Incorrect

It depends what you mean by "crash" people through the word crash around when they really don't know what they're talking about
rescissions, depressions and market corrections are all different things and have different reasons for happening usually on a case by case basis

>>405078
The ones that have been happening on a cycle those crashes. The recessions are part of that cycle

Too many broke soyboys using up $100,000 credit to buy their funko pop collections

>>405075
crash, depression, recession, and stagnation are just political scare words. there are only market corrections in reality. market corrections happen because idiots who don't know what they're doing try to drive economies in unnatural directions. eventually the market corrects their mistakes and punished everyone for going along with it. short answer: karma.

Bankruptcies, bubble pops, wars, political instability, governmental crackdowns on economic enterprises, natural disasters (like earthquakes), terrorist attacks (such as 9/11), health crises (like the pandemic), mass printing of money by banks.

Because there is no unified capitalist economic plan thus capitalist production is always reacting to a delayed market signal. In the boom cycle capitalists rush in to expand production to cash in on supply not satisfying demand, mass production spreads labor value across more units as the work shift produces more. This does cause mass consumption as there is more demand as prices fall but you reach a point where producers can't lower their prices any lower and still make a profit as you still have capitalists investing based on where the real market was previously resulting in the market being saturated.

Because the nature of the profit dictates so. Even without LTV, it is quite obvious that if you pay your workers 10 bucks for produced goods and want to sell them for 11, they will not have enough money to buy them. That is why when every part of the economy is run on capitalist relations, you need a constant growth and when that growth stops, you are in the crisis of overproduction. Basically, capitalists "solve" this problem through credit - you pay your workers 20 bucks so they can buy your goods for 11, bot for those 20 bucks they produce goods for the price of 22 bucks. With each step you need to increase the scale of operation so that the buying power remains. When you can't you hit the crisis, the longer you run the harder the crisis actually is. You sell your future to pay for present.

Short answer: capitalism
Long answer: massive amounts of investment into something followed with massive amounts of withdrawal from that same thing leads to industrial scale market failures

Michael Roberts makes a compelling argument for cyclical dips in the rate of profit being responsible for cyclic crises in this book.

>>405075
Because McDonalds runs out of burgers, their aren’t enough burgers?

>>405083
there is no cycle. can you be more specific about which ones you're talking about?

>>405200
Their is a Burger Cycle

>>405200
>>405211
A cycle of divinity

>>405075
Crashes happen because capitalism works as designed to increase efficiency of mass production to the maximal point. When it's done doing it's thing, time to turn it off and do something else.

and

If my work made you $1,000,000 an hour, you would lose money if you paid me $1,000,001 per hour, and 'break even' means we both stay home.


Suppose:
Company A makes cars/burgers/widgets.
Company B makes identical cars burgers widgets.
Company C ditto
Each company employs 10 workers that make widgets
It takes $50 in parts and $50 in wage labour to make 1 widget.
The companies decide to list widgets for a price of $150, meaning $50/widget is the profit for the capitalist owner.
Workers have $50 per widget they make each to buy widgets and no other expenses. (not reality I know but for charity to the capitalist argument)
$1,500 in worker market per cycle, chasing 30 widgets.
only 10 widgets can be bought per cycle, but 30 widgets were made.

Let's eliminate profit with government loans/subsidy.
$1500 chasing $100 widgets means 15 widgets can be bought for every 30 made.

Let's say fuck wages and just let the workers have the raw materials and tools. They'll make the widgets they want.
$50 in costs becomes $50 in product, why are we bothering with money this is nonsense, just tell me you wanted a fucking widget sandwich and I'll make one; the factory's right there; we agreed we like widgets last week so we built the factory and gathered the raw materials; I like Jeff's widgets better but fuck.

For more, look up "the un-moved-mover" or "God" necessary for 18th Century thinking.
Without an original rich guy 'setting things up at the start' and actively intervening to 'keep things running' this bullshit theoretical system doesn't work.

Further, it may not be immediately clear, but imagine we manufacture 14 Billion TVs of highest quality and distribute them to the people, 2 per person. Do we need to keep making TVs or is Demand satisfied by huge supply?

Suppose those TVs never broke down.
How will the TV workers ever make enough in wages to afford one?

How many 'extra' TV will be made in waste, trying to reach market satisfaction that can't pay for the things they themselves made?

Behold the economic cycle.

More Reading:
http://socialistreview.org.uk/371/what-tendency-rate-profit-fall