Thursday, February 02, 2012

Over supply

http://www.allbusiness.com/agriculture-forestry/agriculture-animal-farming/12717425-1.html

This article shows how rapid growth or industrialization can drive down the socially necessary labor-time, causing an increased production. If the amount of labor needed to produce a good falls, but the same amount of people are still producing the good, then it causes an oversupply. The article shows how increased productivity in the domestic milk industry along with the economy crash caused prices to drop, putting a heavy load on the farmers.

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