Meanwhile, large sections of manufacturing were moved to low-wage areas abroad. And the technology boom did not free capitalism from its insoluble contradiction. Under the capitalist system production only takes place for profit. In the struggle of each giant corporation to expand capitalist exploitation, production always outstrips consumption. Workers are made to work faster and longer hours.
Labor becomes more onerous the more laborsaving devices are applied to production.
Sooner or later inventories begin to build up as production outstrips the capitalist market. Commodities are produced in such quantities that, although they are useful and needed, they cannot be sold at a profit. Instead of distributing the excess to meet the glaring needs of the people, shifts are laid off, factories and offices are shut down. Unemployment and poverty result. Social need becomes greatest at the very moment that unsold inventories are piling up.