#+title: overcapacity led to deindustrialization
- tags :: [[file:capitalism.org][capitalism]] [[file:20210306164610-deindustrialization.org][deindustrialization]]
- source :: [[file:literature/20210306155518-automation_and_the_future_of_work.org][Automation and the Future of Work]]

Per the argument given by Benanav in /Automation and the Future of Work/ the
overcapacity in the manufacturing sector of the first world after WWII
(particularly in the US) eventually caused the phenomenon known as
deindustrialization. The US manufactured more goods than it could consume and
exported them, creating the [[file:20210306172935-post_war_era_in_the_us.org][post-war era in the US]]. However, once other
countries followed suit (beginning with Europe), the US could no longer compete
with this global market, and the US manufacturing sector contracted, causing
deindustrialization. Firms that could not keep up their productivity folded, and
those that could became multinational.