Leave your feedback Share Copy URL https://www.pbs.org/newshour/economy/do-you-think-that-overproducti Email Facebook Twitter LinkedIn Pinterest Tumblr Share on Facebook Share on Twitter Do you think that overproduction or declining profit rates have contributed to the present subprime loan crisis? Economy Mar 4, 2008 11:29 AM EDT Question/Comment: Karl Marx, in his work “Capital,” alluded to the idea that overproduction contributed to a general historical tendency of capitalism to be undermined by declining returns on capital. Do you think that overproduction or declining profit rates have contributed to the present subprime loan crisis? Paul Solman: Nope. Declining regulation on lending, declining housing prices and rising interest rates are the culprits. See my attempt at an explanation, featuring the terrific economics explainer (and real estate guru) Karl “Chip” Case, a professor at Wellesley. We're not going anywhere. Stand up for truly independent, trusted news that you can count on! Donate now
Question/Comment: Karl Marx, in his work “Capital,” alluded to the idea that overproduction contributed to a general historical tendency of capitalism to be undermined by declining returns on capital. Do you think that overproduction or declining profit rates have contributed to the present subprime loan crisis? Paul Solman: Nope. Declining regulation on lending, declining housing prices and rising interest rates are the culprits. See my attempt at an explanation, featuring the terrific economics explainer (and real estate guru) Karl “Chip” Case, a professor at Wellesley. We're not going anywhere. Stand up for truly independent, trusted news that you can count on! Donate now