Capitalist Crisis

A capitalist crisis occurs when the economic system driven by private ownership and profit faces significant problems, such as a sudden drop in investment, falling demand, or financial instability. These crises can lead to layoffs, declining production, and recession, often caused by overproduction, excessive debt, or market imbalances. Essentially, when businesses produce more than consumers can buy or when financial risks become unmanageable, the system struggles to operate smoothly, leading to economic downturns that impact individuals and society as a whole.