On The Characteristics Of Overproduction, Cause And Solution

Overproduction has appeared in our country since 1997. With the peoples life level improving and consume structure up grading, the economic increase in quantity dont change to economic increase in quality. The overproduction is not a simple cyclical phenomenon, but special expression that economic structure can not upgrade successfully in transitional period from elementary industrilizement to intermediate industrilizement. The economic system accounts for the overproduction at present. The rural economic system has become obstacles of the change of agricultural production from small scale to large scale. The compartmentation of city and countryside is trammel of the flow of susplus labourors. Local governments invest blindly and construct repeatedly. To solve the overproduction problem, we can not only adopt short term stimulate demand policy. We must reform the administrative system, the state owned economy system and rural economic system. At the same time we must carry out easy fiance and easy money policy to stimulate the total demand and adjust economic structure to balance the supply and demand in a higher level and make the economy develop steadily and healthily.