Our ability to over produce is the root cause of our economic collapse

Almost every day we are treated to news of this year’s grain harvest being exceptional; the yield is high, the quality superb and the weather benign towards harvesting. 

A farmer’s dream one would think but apparently not. It is turning into an agrarian nightmare. There is simply too much grain, both in Ireland and internationally and in such oversupply prices have collapsed. Something similar is happening to beef and farmers are already protesting. In the 21st century oversupply is a phenomenon that affects practically every aspect of production of goods and services throughout the world and to date there is denial and a dismal failure to recognise or react to the greatest economic challenge of the present and future.

Although there is substantial debate on the plight of grain farmers I have never yet heard any in-depth analysis of the causes or implications of such a recent phenomenon. There have often been “gluts” of particular goods or services but they have been isolated and shortlived as market forces quickly eliminated the most inefficient and normal production and trading conditions were restored. But when overproduction becomes widespread global market conditions are swamped and entirely inadequate to deal with an unprecedented and increasing cause of economic collapse. Ability to overproduce is the root cause of economic collapse over the last decade. In such a situation “growth”, or increasing production further, is about as absurd or counterproductive as economic policy can become. However, in defiance of all logic that is the only solution envisaged by present economic policy. The era of growth is over, it will be by an era of enough or grossly more than enough if not restrained and managed. Economic ideology must adapt.