What are disadvantages of having a surplus in the economy?

Your perishables rot in the stockyards.

Storage costs

Yeah. I need more information, to provide a response…..

They’ve spent money and resources producing something that no one wants and because the supply is greater than demand they’ve driven prices down.

So, back on topic, I believe we are looking at basic supply and demand pitfalls here. Correct me if I misinterpreted the Q.
As mentioned, cost of storing excesses, and loss due to deterioration (rot).
There is also potential layoffs, depending on how large a producer we are discussing.
And, if our product becomes outdated, or faced with a surge in competition, it could become a permanent loss, with no market at all.
It is best to keep stock in accordance with the current market demand.

I think @Lightlyseared gets the cigar. Prices fall.

You would have to go back to the 90s so you could ask Bill Clinton and the GOP congress he worked with. Since then it’s just been 18 years of tantrums, angry memes, and jack shit getting done.

SPOILER ALERT: The next guy in charge always fucks it all away.

Prices don’t fall as a result of overstock. Prices fall due to excess of competition.

@Patty_Melt I disagree. Storing stuff is expensive. It can very quickly reach the point where the cost of storing the item is greater than the value of the item. At that point if not before it it makes ecenomic sense to lower the price.

It doesn’t affect the cost, it is affected by the change in cost.
Cause and effect.
Edit: that would fall under storage costs, I covered that.

There are many different types of products. Some are easily stored, others require lots of space, or power…

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