• NaturalsNotInIt [any]
    ·
    4 years ago

    Ultimately, overproduction and TRPF both come from the same idea. Either you cut costs and end up lowering the demand for products, which ruins your profits, or you keep producing too much, which you can't sell. Either way, Capitalist greed eventually means that you don't fully go from C to M'.

    The end result in either case is a crisis of overproduction, but in the post-1980 world of austerity, people are more used to the idea of "cost cutting causing a demand collapse" than "too much shit made and no market for it".

    A "crisis of overproduction" doesn't make sense to modern people who have no understanding outside of mainstream economics because we have a solution to that - just have the government buy up the surplus and print money! TRPF is a more concrete way to say "this system is doomed".