In Economics, What Is Overproduction?

Overproduction refers to an economic phenomenon in which the total production of social goods greatly exceeds the demand for ability to pay. It is the main characteristic of the economic crisis, and overproduction may lead to the economic crisis.

[shng chn guò shèng]

Overproduction (pinyin: shng chn guò shèng), what is produced and how much is determined by the enterprise.

In responding to the situation of overproduction, the state has adopted more national macro-controls and government intervention methods, and has achieved certain results in curbing the further deterioration of the overproduction situation. However, from the perspective of Marxism, the inherent contradictions of the capitalist system are irreconcilable. This is the contradiction between "socialization of production and capitalist private ownership of the means of production".

The cyclical outbreak of the economic crisis, and the increase in the frequency of outbreaks, the increase in intensity, the expansion of the scope of influence (spatially and in the economic field involved), and the further extension of the duration are the best proof of this. Overproduction also occurs under the socialist system. In April 2011, vegetables from Henan, Shandong, Anhui and other places in China were listed at the same time, which caused serious overproduction.