Economic crisis out of scissors

Definition

An economic crisis out of scissors is characterized by a variation growing between the selling prices (in fall) and the production costs (in rise). During a crisis out of scissors, the Turnover decreases structurally.

By plotting a graph, one sees appears two branches of a scissors, formed by the rise of the purchase prices (chisel going up) and selling prices (chisel going down) lower it.

Generally, to compensate for the fall of the Turnover, the economic actors are obliged to produce more, which worsens the crisis of overproduction and constitutes the principal perverse effect of the crisis out of scissors.

Unless finding new outlets to compensate for the fall of profitability, a crisis out of scissors ends in a Déflation.

By extension, one employment the term of crisis out of scissors when there exists a variation growing between two factors, such as supply and demand, driving with a radical fall of the prices.

Historical examples

the agricultural crisis in the United States in 1929.
the agricultural crisis in Russia in 1920 (but without rise of the production, because of collectivization).
Stagflation in 2006 in Western Europe: lower wages, raises prices.
real Crisis in Germany or in Japan: raise offer of new housings, lowers demand for residences, driving with a Black hole of the real estate

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