Underconsumption

Hmm...all those donuts seem to be piling up to the ceiling. You know what all that excess supply means: no, not a donut party. Underconsumption.

Underconsumption is when there's just not enough demand to meet the current level of supply. This makes businesses sad. Depressed, really.

To be clear: this isn't some Keynesian notion that it's all consumers' fault for not demanding enough donuts...or enough of whatever goods and services. It's just pointing out the obvious: there's excess supply. Businesses, like donut shops, usually make a certain amount of goods with their estimates of how much consumers have consumed in the past, and at what price. When that consumption goes down, businesses are probably still producing the same amount in the short-run while consumers are consuming less than usual.

Underconsumption is common in talks of recessions, depressions, and economic stagnation. People just don't feel like spending. Maybe they're afraid they'll lose their jobs. Or already have.

Extreme times call for extreme measures. Like donut parties.