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Meaning of sobreproducción




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sobreproducción
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The term overproduction or overproduction refers to the economic situation in which the supply of products exceeds demand. When it is widespread and durable, the country that suffers enters crisis, because it is unable to dispose of their stocks. The companies are forced to reduce its activities and to dispense with the workers party, when not to close, thereby causing a major social problem. An example of a crisis of overproduction was suffered by United States after the first world war, when its economy, adapted during the war to provide the allies from supplies and military equipment, was found with a significant reduction in demand as Europe rebuilding its economy. Excess of non-marketable products affected particularly badly agro.

  



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