&gt;Look at the Cash for Clunkers program a few years back.<p>Which was done just after a recession. That&#x27;s not evidence of overproduction in general, just one year when demand unexpectedly went down.<p>&gt;But just because we don&#x27;t overproduce right now doesn&#x27;t mean we couldn&#x27;t if we wanted to. I&#x27;m still not seeing where production is the problem. If production was the limiting factor, they would be running the factories 24&#x2F;7 instead of shutting them down.<p>But if we can produce so many cars, why are cars still expensive? Shouldn&#x27;t the ability to create massive supply drive the price down a lot?<p>There are plenty of people that want new cars. And are willing to pay for them. It&#x27;s not like we have more cars than people actually want. It just costs a lot to make a car. And that cost includes fixed costs like the factory itself. But factories wouldn&#x27;t be closing down if other costs weren&#x27;t also very large.<p>Yes in theory we could make millions more cars than we do. But not for free. It would require buying more materials, hiring more workers, building new production lines, etc. Those costs must be greater than the expected return for selling another car. Otherwise they would already be doing it.