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Surely the problem is that the supply of various goods is hitting physical limits. A reduction in demand wouldn't reduce supply; instead it would cause demand
by legutierr 4y ago
Surely the problem is that the supply of various goods is hitting physical limits. A reduction in demand wouldn't reduce supply; instead it would cause demand to be more in line with a fixed supply level.
- aeternum 4y agoWhich goods are hitting physical limits? This generally doesn't happen with capitalism.
- wafriedemann 4y agoThere definitely is a limit, but most certainly there are a ton of temporary limits. You need more workers, which are limited (the US is basically at full employment), you need new factories (which take time to build), you need to factor in if the increased demand is sustainable (otherwise you wouldn't build it).