[Marxism] Overproduction - underconsumption

Nestor Gorojovsky nmgoro at gmail.com
Tue Oct 13 18:04:32 MDT 2009

However, under the title "China, a locomotive", there is a short piece 
of news in Pa'gina 12 of Buenos Aires today, where you can read (fast 
translation) that "the global steel industry began its recuperation of 
the crisis sooner than expected. This is due to the strong increase of 
the sectorial demand in China, according to the World Steel Association 
(Asociacio'n Mundial del Acero). According to this source, an 8.6 pct 
contraction is expected for this year, while half a year ago the 
estimation was a fall of 14.1 pct"

If the "global steel industry" is worried by THE FACTS ABOVE, this means 
that the imperialist bourgeoisies are worried. I won?t sum my own 
feeling to theirs.

S. Artesian escribio':
> Latest estimate of China's steel making output capacity I've come across is 
> in the Financial Times of 12 October-- 600 million tons, so I was 
> conservative in my estimate of the capacity growth over the last year, and 
> actual demand vs the increased capacity in China is less than I estimated, 
> meaning the overcapacity is greater than 22% and probably over 25%.
> Global output has declined more than 20% in the first half of 2009, and 
> CISA has stated that China's consumption will decline this year. China's 
> steel exports were about 50 million tons in 2007, current exports are only 
> 1/10 of that-- at about 5 million tons reported the FT on 5 October.
> However, the recovery in China has the global steel industry worried.
> Says the FT 12 October:  "The unexpectedly swift recovery in China's steel 
> production has sparked fears that a glut of exports counld puncture steel 
> prices as the global industry struggles to emerge from the downturn...."
> The country apparently most concerned with China's exports?  India.
> According to the FT: "SK Roongta, chairman of the Steel Authority of India 
> said Chinese overproduction was 'a point of concern' for the world's steel 
> producers."
> Those who pay attention to these things, rather than just make things up as 
> they go along,  will also note the recent protest in Brussels, I believe, 
> where protesting farmers dumped millions of gallons of milk into the 
> streets.  The EU, which already provides euro 55 billion in subsidies to the 
> agricultural sector was moved to provide an emergency payment of euro 15,000 
> per dairy farmer.

> The US  has 60,000 dairy farm units, the EU has 1.4 million dairy farms. 
> The price per liter received by the EU farmers has declinced from 45cents to 
> 25 cents.
> Now this is overproduction.  Does it mean there are any fewer malnourished 
> children in the world in need of milk?  Of course not, there are more than a 
> year ago.  Does it mean that there is less need for milk than a year ago? 
> Of course not, but capitalist production has nothing to do with need, or its 
> contact with actual need is tangential, accidental-- mediated by the value 
> form.
> The very essence of private property in the means of production, the 
> capitalist production of milk, is that it must be "blind" to the actual 
> assessment of need,  as the private producers try to realize the surplus 
> value expropriated in production through exchange in the market.  Only 
> through this 'blindness' can capital distribute and ration profit.
> So production becomes overproduction on the very basis of the attempted 
> realization of the total social value in private production.  Production 
> becomes overproduction based on the very limits of the markets capital so 
> covets.
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