New Stock Market Crash Inevitable
Every production phase or society or other human invention goes through a so-called transformation process. Transitions are social transformation processes that cover at least one generation. In this article I will use one such transition to demonstrate the position of our present civilization and and that a new stock market crash is inevitable.
When we consider the characteristics of the phases of a social transformation we may find ourselves at the end of what might be called the third industrial revolution. Transitions are social transformation processes that cover at least one generation (= 25 years). A transition has the following characteristics:
- it involves a structural change of civilization or a complex subsystem of our civilization
- it shows technological, economical, ecological, socio cultural and institutional changes at different levels that influence and enhance each other
- it is the result of slow changes (changes in supplies) and fast dynamics (flows)
A transition process is not fixed from the start because during the transition processes will adapt to the new situation. A transition is not dogmatic.
Four transition phases When we consider the characteristics of the phases of a social transformation we may find ourselves at the end of what might be called the third industrial revolution. The S curve of a transition
Figure: Four phases in a transition best visualized by means of an S – curve: Pre-development, Take off, Acceleration, Stabilization.
In general, transitions can be seen to go through the S curve and we can distinguish four phases (see fig. 1):
- a pre-development phase of a dynamic balance in which the status does not visibly change
- a take-off phase in which the process of change starts because of changes in the system
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