With the further development of capitalist economy after the first industrial revolution, the basic contradiction between 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 occurred in Britain, the initiator of the first industrial revolution, spread to the whole of Europe in the1830s, and became a disaster in the1840s, with the industrial scale of the whole of Europe reduced by two-thirds.

Human society is at a loss for this, and the social science field is unprepared for it, 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 data:

Marx wrote in Das Kapital: Market economy can't eliminate the root of economic crisis, so economic crisis breaks out periodically. This periodicity of economic crisis makes capitalist reproduction also cyclical.

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 beginning of the next one.

References:

Baidu Encyclopedia-1825 British economic crisis