-Social Economy is a collective response to social crisis-
Phase three: ③ 1929-1932
(new competitive regulation→mutual support organizations)
(crisis requiring heavy investments in agriculture and natural resources→agricultural and the saving cooperatives)
(economic collapse→ consumption cooperatives)
(crisis of the mass-production system and overburdening
welfare state→social enterprise)
economic collapse→ consumption cooperatives
The third generation of social economy organization emerged from the economic collapse of 1929–32. The Great Depression hardly hit capitalism an it was to a large extent the result of the crisis in competitive regulation.
Chronic over-production, high unemployment rate, price slumps, corporate insolvency paralyzed economic activity in circulation. It was kind of vicious circle. People suffered from this economic vicious circle.
To ease hardships with collective efforts, The consumption cooperatives for food and housing emerged. They supported workers and unemployed people to allow them to procure goods and services at affordable prices.
Frank Moulaert and Oana Ailenei, 2005, “Social Economy, Third Sector and Solidarity Relations: A Conceptual Synthesis from History to Present”, Urban Studies 42(11): 2037-2053.