>>508788597
>demand becomes too low
You don't get. Capitalism's internal demand can never afford to pay for capitalism's internal output/aggregate production a price which makes that output profitable to have produced in the first place.
Do you understand? It's like expecting an electric motor to be powered by a generator connected to it output shaft.
It simply will not work. Unless, of course, the demand difference to profitability is sourced from new fiat currency created over the last few weeks/months. So from new debt to banks.
>so producers have to sell their stuff at a loss
This is the default situation of all businesses and corporations inside of capitalism if there is no more perpetual and accelerating creation of fiat or even fictional fiat currency.
There is no such thing as financial profit, brah. That's what you can't wrap your mind around. It literally does not exist. It's literally just newly created fiat or fictional fiat currency.
You seem hung up on this. You can actually model this with a few other people by buying and selling the same one hat off of each other but always having to pay more for it than you yourself spent on acquiring it. You'll eventually find that the cost of the hat, which is a symbol or substitute for the aggregate production of a capitalist society, has become so expensive than it's more expensive than the amount any of you has. And if you lend to each other, eventually more than all of you have put together.
>and have sunk costs forcing them to work anyway.
You still don't see it. You still don't see how money and the requirement for financial profitability stops and even prevents real economic activity.
>Personally I think the government should protect those vital interests (food production, biomass production etc) which is compatible with the mechanism of consumers allocating their own funds where they want.
Personally, I think the notion of money and financial profit is mental illness. (((Societally))) induced though.