Social Division And Economy Crisis

Economy crisis is become one of the common events in modern society. It left heavy shock to stable economy society. The general meaning of economy crisis is relative surplus for produce ability. There has much same phenomenon during each crisis, such as supply and demand unbalance, product and custom unbalance, produce and reproduce unbalance, etc. Of course, depression always the result of crisis and include other serious things: unemployment, GDP decrease, even turbulence.Several economists thought about crisis from different points of view in order to find out the mechanism which hidden behind crisis appearance. Another field which followed crisis - crisis transmission- also attract many economists to research on, and they gave out many theories. But former studies can not explain both economic crisis and crisis transmission in one theory.This paper showed an opposite way that deepen and widen of division must caused the crisis. Based on Smith, Allyn and Xiaokai Yang's division mind, this paper used another method to discuss the effect of division in crisis and outlined a profile of crisis process: division-information distortion - resource distribution distortion-crisis - information re-gather - new division.This paper found that the economy society have another inside structure -division structure not only the merchandise structure which former studies based on. On latter structure, there have many theories to explain crisis and transmission but separate them. When we put research under division structure, we found another scene: after division, different social departments undertake different scale of information, some large and some small. Two characteristics-distortion and hysteresis emerged during information exchange. This caused information distortion in transmission, and each distortion also caused incorrect resource distribution. Finally, crisis broke out.Information distortion just like entropy that when it increase the order is decrease. Fortunately, there have two ways-new elements and crisis-to lighten entropy's increase. But former instrumentality only lag the distortion time and the latter is the only way to solve the problem thoroughly.This paper have 5 sections: 1st section ingather former theories; 2nd section discuss the crisis causes based on Xiaokai Yang's theory; 3rd section discuss crisis from social division structure; 4th section discuss the business cycle and crisis transmission; 5th section explain the first industrial revolution from social division structure.The creation of this paper is that the model in this paper can explain crisis causes and crisis transmission either. In the business cycle section, we can illustrate four business cycles in this model also.We use qualitative analysis and quantitative analysis in this paper and the clue is inspection from industrial structure. There have some short-comes that author can not certify the mind in mathematic because of poor math skill. But this paper gave a new explanation in logical mind.