Überproduktion

Überproduktion, a German term meaning overproduction, refers to a situation where the supply of goods or services exceeds the demand for them. This can occur in various economic contexts, from individual industries to the entire economy. Factors contributing to überproduktion include rapid technological advancements leading to increased efficiency and output, optimistic market projections that result in excessive investment, and a decline in consumer purchasing power that reduces overall demand.

When überproduktion occurs, businesses may face challenges such as accumulating unsold inventory, leading to potential price reductions, decreased production, and ultimately, job losses. In a broader economic sense, sustained überproduktion can contribute to economic downturns or recessions. Governments and central banks may implement policies to mitigate überproduktion, such as stimulating demand through fiscal or monetary measures, or encouraging diversification of industries. Addressing überproduktion often involves finding a balance between production capacity and market consumption.