Quote from: johnyj on March 16, 2015, 10:28:14 PM

Quote from: deisik on March 16, 2015, 10:00:45 PM

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

Yes, but technology improvements still don't make producers better off per se (and it is not government that pushes forward technological innovation). You still need effective demand to get profit out of these improvements. But how can this be made possible if large amounts of people are thrown out of working force (and don't get employed somewhere else)? New manufacturing processes always shake up the labor market, but as we see that human population grew exponentially since the Industrial Revolution with the standards of living ever improving, we can only make one inference, that is, advanced production turns out to be creating more jobs in the end...

Could you explain this by just "government having an endless credit line"?