America's overcapacity crisis

 No, China's overcapacity in production is not a problem to China or the world. China's overcapacity is a boom and a welcome event to all the countries that want to have the best and most advanced goods and tools at the most affordable prices. China is delivering to the world what the world wants at marginal profits that are good enough for China. China is happy with the lower profits as long as the customers are happy and Chinese workers and manufacturers are happy.

The Americans are now also facing overcapacity as a very serious manufacturing and financial problem. The Americans, including the Europeans, are continuing to manufacture and to produce goods that they used to produce like before. What is the problem? Where is the problem?

The problem is that the American goods are not only shamefully expensive, but also of a quality that does not give good value for money. In many areas, the goods are obsolete, irrelevant and not wanted by their customers. For example, no one is going to buy America automobiles, not even American EVs. The net result, American factories ended up in a 'overcapacity' situation, plenty of goods and products, but no buyers. American warehouses are fully stock with goods, but not moving.

This state of affair, ie overcapacity in American factories, is across the industries. Everything the Americans makes is no longer saleable. The more they produced, the more they are filling their warehouses and storage spaces.

American overcapacity is killing all American industries, and Nvidia is the biggest victim with millions of high end chips, due to overcapacity, but no one buying or few takers. Production overcapacity, ie over supply against lower demand or no demand. This applies also to AI models, overpriced chasing away users that can fall back on free AI or affordable AI.

The Americans and Europe are going to eat their overcapacity for breadfast, lunch and dinner, all year round. They have to consume whatever they are producing furiously to keep the factories running and workers occupied and employed, and to keep paying to China for more raw material and parts, to keep China's supply chains running.

Overcapacity is now a curse in American factories. The Americans must manage its own overcapacity problem or will run out of money and start to retrench more workers. The factories cannot hold on to their workers when the goods and products are not selling and bringing in revenue. Period.

PS. The American companies are throwing away the cars they cannot sell. Nvidia will soon have to do the same.