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which I can get the shoes may in large measure depend my ability to get the handkerchiefs. So, in the aggregate demand for the different forms of wealth, there is a similar relation. And as, under the division of labor characteristic of the modern industrial system, nearly all production is carried on with the view, not of consumption by the immediate producers, but of exchange for other productions, certain commodities may be produced so far in excess of their proper proportion to the production of other commodities, that the whole quantity produced cannot be exchanged for enough of those other commodities to give the usual returns to the capital and labor engaged in bringing them to market. This disproportionate production of some things, which is overproduction in relation to the production of other things, is the only kind of overproduction that can take place on any considerable scale, and the overproduction of which we hear so much is evidently of this character.
426:". The consumer's desire to trade causes the potential consumer to become a producer to create goods that can be exchanged for the goods of others, goods are directly or indirectly exchanged for other goods. Because goods can only be paid for by other goods, no demand can exist without prior production. Following Say's law, overproduction (in the economy as a whole, specific goods can still be overproduced) is only possible in a limited sense.
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Relative overproduction there, of course, may be. The desires for different forms of wealth vary in intensity and in sequence, and are related one with another. I may want both a pair of shoes and a dozen pocket-handkerchiefs, but my desire for the shoes is first and strongest; and upon the terms on
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Is there, then, such a thing as overproduction? Manifestly, there cannot be, in any general sense, until more wealth is produced than is wanted. In any unqualified sense, over- production is preposterous, when everywhere the struggle to get wealth is so intense; when so many must worry and strain to
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get a living, and there is actual want among large classes. The manner in which the strain of the war was borne shows how great are the forces of production which, in normal times, go to waste; proves that what we suffer from now is not overproduction, but underproduction.
398:. Effective demand are levels of consumption that corresponds to the level of production. If effective demand is achieved then there is no overproduction because all inventories are sold. Importantly, Keynes acknowledged that such measures could only delay and
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308:. A reduction in employment, in turn, reduces consumption. As overproduction is the excess of production above consumption, this reduction in consumption worsens the problem. This creates a "feed-back loop" or "
301:, the core of the capitalist economy, creates a dynamic whereby an abundance of commodities has negative consequences. In essence, an abundance of commodities disrupts the conditions for the creation of profit.
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two sides to the same coin – excess supply is only relative to a given demand, and insufficient demand is only relative to a given supply – and thus consider overproduction and underconsumption equivalent.
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that are produced, the more those goods (supply) can constitute a demand for other goods". Keynes summarized this "law" as asserting that "
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also forces businesses to reduce production as profits decline. Reduced profits render certain fields of production unprofitable.
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formulated a theory of overproduction, which led him to propose government intervention to ensure
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This article is about the economic concept of overproduction. For the musical term, see
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Money, Banking, and the
Business Cycle: Volume Two Remedies and Alternative Theories
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Overproduction is the accumulation of unsalable inventories in the hands of
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Excess of supply over demand of products being offered to an economic market
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536:"Underconsumption and Overproduction Theories of the Business Cycle"
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may have arisen due to the excess level of productive activity.
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285:. The tendency for an overproduction of commodities to lead to
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376:) in society while simultaneously diminishing the
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157:. Please do not remove this message until
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153:Relevant discussion may be found on the
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239:
227:
223:unemployment
206:
202:
198:
194:
188:
173:
164:
142:
112:
103:
93:
86:
79:
72:
60:
48:Please help
43:verification
40:
1548:New Zealand
1506:2020–2022;
1470:New Zealand
1443:2007–2009;
1389:1990–1991;
1373:(1982–2007)
1341:1980–1982;
1313:(1973–1982)
1291:(1957–1958)
1285:(1953–1954)
1279:(1948–1949)
1267:(1945–1973)
1232:New Zealand
1215:1929–1939;
1191:(1918–1919)
1182:(1918–1939)
1164:(1910–1912)
1158:(1907–1908)
1152:(1902–1904)
1143:(1893–1897)
1137:(1890–1891)
1113:1873–1879;
1102:(1870–1914)
1085:(1869–1870)
1079:(1865–1867)
1070:(1857–1858)
1061:(1847–1848)
1049:(1840–1870)
1020:(1825–1826)
1011:(1815–1821)
996:(1796–1799)
990:(1789–1793)
962:1772–1774;
951:(1760–1840)
929:(1430–1490)
927:Great Slump
920:(1000–1760)
866:Stagflation
825:Yield curve
771:Price level
503:Overgrazing
497:Overfishing
357:Das Kapital
283:consumption
273:Explanation
1513:Bangladesh
1450:Bangladesh
1094:Gilded Age
846:Depression
798:Stagnation
620:Bond, P.,
599:. (1883).
564:2022-07-20
520:References
374:use values
366:capitalism
351:capitalism
306:employment
279:businesses
267:profitable
209:refers to
199:oversupply
144:neutrality
106:April 2010
76:newspapers
1553:Singapore
1508:Australia
1485:Sri Lanka
1445:Australia
1391:Australia
1217:Australia
1207:1926–1927
1204:1923–1924
1170:(1913–14)
1146:1899–1900
1002:1807–1810
999:1802–1804
980:1785–1788
905:Sahm rule
836:Recession
737:Inflation
733:Deflation
448:pollution
417:Say's law
412:Say's law
406:Say's law
347:Karl Marx
314:deflation
191:economics
155:talk page
1585:Category
1538:Malaysia
1523:Botswana
1475:Pakistan
1465:Malaysia
969:Scotland
829:Inverted
793:Recovery
626:Marxmail
454:See also
148:disputed
1543:Namibia
1131:1887–88
1073:1860–61
1064:1853–54
1055:1845–46
1026:1833–34
1023:1828–29
1014:1822–23
964:England
856:Rolling
742:Chronic
90:scholar
1568:Zambia
1528:Canada
1518:Belize
1455:Canada
1420:(2001)
1396:Canada
1343:Canada
1222:Canada
893:Supply
888:Demand
861:Shapes
851:Global
761:demand
686:Supply
555:
295:profit
219:prices
215:market
92:
85:
78:
71:
63:
1533:India
1460:India
1227:India
883:Shock
701:Model
97:JSTOR
83:books
1273:1945
1005:1812
669:and
665:and
553:ISBN
372:(or
251:muda
207:glut
141:The
69:news
545:doi
400:not
240:In
205:or
189:In
52:by
1587::
624:,
603:.
583:,
572:^
551:,
539:,
361:.
225:.
201:,
197:,
193:,
1367:/
1096:/
1043:/
986:/
827:/
759:/
735:/
684:/
655:e
648:t
641:v
547::
180:)
174:(
169:)
165:(
161:.
151:.
119:)
113:(
108:)
104:(
94:·
87:·
80:·
73:·
46:.
23:.
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