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Updated: June 8, 2025
We do not have to bother about overproduction for some years to come, provided the prices are right. It is the refusal of people to buy on account of price that really stimulates real business. Then if we want to do business we have to get the prices down without hurting the quality. Thus price reduction forces us to learn improved and less wasteful methods of production.
It is probably true that ninety percent of the cotton manufacturers would agree to eliminate starvation wages, would agree to stop long hours of employment, would agree to stop child labor, would agree to prevent an overproduction that would result in unsalable surpluses.
It must be obvious that the nation controlling the transportation of the Far East will seek to control its trade: and it is sounding no false alarm to cite facts and conditions showing that the awakening lands of Eastern Asia have more in store for energetic Japan than for the United States, now fattening inordinately on home trade when overproduction comes, as it surely will, it then may be found difficult to supplant another people in the occupation of conveying American commodities to Eastern markets.
And, as is now well known to all of us, the same net loss to society comes from reckless overproduction and monopolistic underproduction of natural and manufactured commodities. Overproduction, underproduction and speculation are three evil sisters who distill the troubles of unsound inflation and disastrous deflation.
But what happens if wide distance part him from civilized towns, if the roads are swampy and not made by art, and the conveyance of food be too onerous to remunerate him? All his neighbours being in like case, there is a local Overproduction of food; yet not one of the little community is thereby made a pauper. No one is able to expel them from their rude homes, or forbid their cultivation.
They include high-pressure salesmanship which creates cycles of overproduction within given industries and consequent recessions in production until such time as the surplus is consumed; the use of patent laws to enable larger corporations to maintain high prices and withhold from the public the advantages of the progress of science; unfair competition which drives the smaller producer out of business locally, regionally or even on a national scale; intimidation of local or state government to prevent the enactment of laws for the protection of labor by threatening to move elsewhere; the shifting of actual production from one locality or region to another in pursuit of the cheapest wage scale.
I then said this to the Congress: "But the very vigor of the recovery in both durable goods and consumers' goods brought into the picture early in certain highly undesirable practices, which were in large part responsible for the economic decline which began in the later months of that year. Again production outran the ability to buy. "There were many reasons for this overproduction.
To us youngsters with the positiveness, the rationalism of youth, it seemed that the strikes and lockouts, the overproduction and misery could not possibly result simply from ignorance and want of thought and feeling. We needed more dramatic factors than these mental fogs, these mere atmospheric devils.
Throughout most of the seventeenth century the tobacco planters were plagued with the problem of overproduction and low prices. To add to their woes the entire eighteenth century was one of periodic wars either in Europe or in America, or both.
Overproduction in special lines, which was the great hobgoblin of your day, is impossible now, for by the connection between distribution and production supply is geared to demand like an engine to the governor which regulates its speed. Even suppose by an error of judgment an excessive production of some commodity.
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