Unfortunately, China tried to combine state run philosophy with capitalism. The hybrid failed because it is powered by politics rather than profit. It is unlikely that a true capitalist system would fall prey to over production, at least not twice. On the other hand, the Chinese government is terrified of having unemployed people. Unemployed people riot against the government. When things got bad capitalists would lay off workers and that can not be allowed. Pity the government. Their only choice would be to govern less. Much less.
Incidently, GM regularly had a huge backlog of the unpopular Volt. They over built because the Administration insisted on it. Politics.
“Their only choice would be to govern less. Much less.”
YES. And that is the only “solution” for the US. It is TIME to DownSize DC! Eliminate entire Rogue/Unconstitutional Departments, including their SWAT Teams.
Washington is not the solution, but it is the problem.
Bingo. Good synopsis of why fascism fails.
“it is unlikely that a true capitalist system would fall prey to over production, at least not twice.”
It happens all the time. That’s what booms, busts, corrections and recessions are. Production of one thing is very profitable, so many people start making it until competition becomes so great that there is oversupply and loss of profit. Those businesses that can’ t do it fail.
The big problem is underproduction and resource diversion in command economies. Not enough toilet paper and too many paper clips.
Didn’t Obama promise to buy a Volt when he left office?
I’ll buy every word of that post
However, if you build it, they will come
China has lots and lots of room for growth. Over production is the result of to rapid a rate of growth. If the slope of the growth curve is reduced, things can proceed.
The question then becomes , how long will it take to get back on track?