Overproduction
excess of supply over demand of products being offered to an economic market
In economics, overproduction, oversupply, excess of supply, or glut refers to excess of supply over demand of products being offered to the market. This leads to lower prices and/or unsold goods along with the possibility of unemployment.
The demand side equivalent is underconsumption; some consider supply and demand two sides to the same coin – excess supply is only relative to a given demand, and insufficient demand is only relative to a given supply – and thus consider overproduction and underconsumption equivalent.
In lean thinking, overproduction of goods or goods in process is seen as one of the seven wastes (Japanese term: muda) which do not add value to a product, and is considered "the most serious" of the seven.
Overproduction is often attributed to previous overinvestment – creation of excess productive capacity, which must then either lie idle (or under capacity), which is unprofitable, or produce an excess supply.
Explanation
Overproduction is the accumulation of unsaleable inventories in the hands of businesses. Overproduction is a relative measure, referring to the excess of production over consumption. The tendency for an overproduction of commodities to lead to economic collapse is specific to the capitalist economy. In previous economic formations, an abundance of production created general prosperity. However, in the capitalist economy, commodities are produced for monetary profit.
Begin with the source’s own compact description: “Overproduction” is excess of supply over demand of products being offered to an economic market. The dossier treats that line as a proposition to test through Overproduction, excess and supply, not as a finished interpretation.
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The citation trail is more important than the brevity of the summary: it shows where individual claims can be examined in context. The source revision retrieved here is dated Jun 23, 2026. The linked authority identifier is Q333076. The Library of Congress control number is sh85096204. 1 of 1 selected statements include explicit references; 1 carry qualifiers and 0 use preferred rank.
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