Is today s economic crisis a manifestation of overproduction? Will it lead to the elimination of pro

To be precise, China's current economic crisis is not overproduction, but insufficient demand, which is manifested in insufficient consumption. The current economic crisis in the United States is a vicious circle of deflation triggered by the spread of the financial crisis to the real economy. Excess productivity is a general trend, and the contradiction between supply and demand will become more and more intense in the future, triggering an economic depression, which will shrink supply to a certain extent, but it will not be "eliminated".

Some economists believe that there is no such thing as "overproduction". "Excess productivity" is just the opposite of insufficient effective demand. Because from the consumer's point of view, there will always be a desire to buy a consumer product, and it is a better consumer product.

However, due to various reasons such as the distribution system and the economic environment, consumers themselves cannot afford to buy or do not want to buy, so there is overproduction.

From this point of view, as long as human beings are still pursuing, productivity will continue to develop.

As long as people have agency, they will be productive.

There are still so many poor people in China, which shows that there is not enough material resources.

Why is there a saying of overcapacity, that is, there are too few people who buy things, and the purchasing power is too low. Therefore, everything produced is for foreigners to consume. Once foreigners stop buying things, then the remaining products are superfluous, so it is called overcapacity.

If foreigners or Chinese consume the rest cleanly, then there will be no problem of overcapacity.

The contradiction between the tendency of unlimited expansion of production and the relative narrowing of the demand of the working people who have the ability to pay, and the contradiction between the organization of production within individual enterprises and the state of non-existence of society as a whole. (When the contradictions are sharpened, the structure of social production will be seriously out of balance, on the one hand, social production will grow on a large scale, and on the other hand, the working class will become increasingly impoverished by the exploitation of the capitalists, resulting in a serious overproduction of society). The fundamental cause of the economic crisis lies in the contradiction between the socialization of production and the means of production, and capitalist private appropriation.

This is the root cause. It may not be written in parentheses.

What to produce and how much to produce are determined by the enterprise, and the production of the whole society is in a state of competition and no competition. As a result, a large number of goods cannot be sold due to the relative reduction of demand for payment. Its vicious development is the crisis of overproduction.

In order to reduce production costs and obtain profits to the greatest extent, enterprises in order to improve production efficiency and shorten their own individual necessary labor time, which inevitably leads to the progress of productivity, which leads to the increase in the quantity and variety of commodities in society, and due to the huge gap between the rich and the poor in society, it will inevitably lead to the relative narrowing of the commodity sales market, that is, the "plague" of overproduction.

Because of the lack of purchasing power. The contradiction between production and consumption is an intrinsic factor in the economic crisis, and the relative overproduction has caused a large backlog of inventories, and the sales chain has not been able to keep up, so that factories have shut down, laid off workers, and the unemployment rate has further limited consumption power.

There is a joke that explains this problem better, a little girl asks her father why the family can't afford coal for the winter, and her mother replies that it is because her father is unemployed, and the girl then asks why her father is unemployed, and her mother says that it is because there is too much coal production.

Capital input - production of goods - sale of goods - re-investment of wealth as capital - more production of goods ......And so on and so forth. Once the goods produced exceed the needs of society, there will be a surplus of goods, that is, overproduction. Overproduction will break the capitalist chain of production, commodities will not be able to be turned into money, and capital will not be able to do so, which will cause production to break.

When production is broken, the workers, suppliers, and capital owners related to production will be affected, which is an economic crisis.

As a result of the decrease in consumer spending, the products produced by the factories cannot be sold, the workers are in a state of loss, the factories are unable to pay wages or lay off workers, and unemployment increases. Unemployment increases, incomes fall, and consumer spending decreases, creating a vicious circle. So when the economy is booming, the unemployment rate is lower, the products are abundant, the ** is cheap, and everyone has money to spend.

Due to the great abundance of products, the factory's products will be in excess of demand, which will reduce **, and some will reduce production. But the demand is still increasing, and finally slowly as the inventory decreases, **start**. The money in people's hands is slowly decreasing, and some of them are starting to borrow money to consume, ** starting to **, and consumer spending is starting to decrease again.

The economy enters a recession, and after a period of depression, it begins to expand again, and slowly prosper again, and the economy goes through four cycles, recovery, prosperity, recession, and depression, just like spring, summer, autumn and winter, and so on.

Some of the consumption expenditures of one person are the income of another person, and if the consumption expenditure decreases, the income of some people will decrease, and the income will decrease, which in turn will lead to a decrease in consumption. In the end, production shrinks or the goods produced are squeezed, and they cannot be sold.

The modern economy generally uses credit overdraft consumption to increase domestic demand, if moderate, it is conducive to economic development, however, excessive overdraft consumption is harmful to the economy. Because credit has a cycle, let's take a family consumption as an example, if a family starts to have no money to spend, the bank gives a limit of 100,000 yuan, he consumes the 100,000 yuan a year ago, and in the second or third year, in order to repay the debt, he no longer consumes excessively. Because the factory saw the increase in consumption in the first year, it felt that there was a market and would increase production, but in the second and third years, the factory produced a lot of goods, and because people had no money to consume, they could no longer spend through borrowing, and the income was used to pay off debts.

So it leads to overproduction. This kind of product is relatively in surplus, and some products are in short supply, such as daily necessities, food. That's why when the economy is in crisis, the food and vegetables in the supermarket are snapped up.

Maybe the car, or some mid-to-high-end goods, can't be sold. Factories will go out of business.

Yes, in order to reduce production costs and obtain profits to the greatest extent, enterprises in order to improve production efficiency and shorten their own individual necessary labor time, which inevitably leads to the progress of productivity, which leads to the increase in the quantity and variety of commodities in society, and due to the huge gap between the rich and the poor in society, it will inevitably lead to the relative narrowing of the commodity sales market, that is, it has led to the "plague" of overproduction.

Overproduction is the main feature of an economic crisis, and overproduction can lead to an economic crisis.

Principle. In order to reduce production costs and obtain profits to the greatest extent, enterprises in order to improve production efficiency and shorten their own individual necessary labor time, which inevitably leads to the progress of productivity, which leads to the increase in the quantity and variety of commodities in society, and due to the huge gap between the rich and the poor in society, it will inevitably lead to the relative narrowing of the commodity sales market, that is, the "plague" of overproduction.