A Historical Perspective on the Economic Crisis

Economic crisis often has a huge destructive power to the economy and affects the development of the whole society, so it needs to be prevented to stabilize social development. The Great Depression of the 1930s and the "stagflation" of the 1970s had a huge impact on the world economy at that time. This paper first analyzes the different coping strategies and the results after the emergence of two economic crises. The two are respectively: 20 Western major capitalist countries use trade wars, financial wars and other vicious competition means to compete for the limited world market to cope with the crisis, and eventually evolve into confrontation between groups, becoming the prelude to world war. After the economic crisis in the 1970s, in the context of the globalization of the world economy, the major capitalist countries in the West adopted a positive cooperative attitude to deal with the economic crisis, conducted effective coordination and cooperation, and tried their best to ease the contradictions among capitalist countries and promote the stable development of the world economy. At the end of the article, we need to be vigilant about the related risks and make suggestions for dealing with the economic crisis in the future.