A common general example is manufacturing consumer goods, but because of competition, the wages of the workers making them decrease (for short term profit by the bosses)
However, because the population has less and less discretionary income, they can’t afford the goods they produce! Which in turn creates surplus, depresses the market price and makes the goods ultimately unprofitable to sell.
A common general example is manufacturing consumer goods, but because of competition, the wages of the workers making them decrease (for short term profit by the bosses)
However, because the population has less and less discretionary income, they can’t afford the goods they produce! Which in turn creates surplus, depresses the market price and makes the goods ultimately unprofitable to sell.