What is the purpose of overcapacity? There is none, so it is profitable for governments that people should be employed to the full by any means (besides, employed people are less prone to social unrest). There is still much room for making the elites' lives better, even in the Caribbean. So no worry for the majority of humanity...
Overcapacity is a natural result of technology improvement, with each stage of technology improvement, large amount of people were thrown out of working force. Government has endless credit line so it does not matter if it is profitable or not