0 to invest too much money in a particular activity or economy: --
Asset price deflation can encourage households and businesses to over-consume and over-invest.
We over-invested in steel-making plant after the war and there passed a period where for over 10 years, no new order for a blast furnace was placed.
Its record on investment shows that it has over-invested far too often.
Indeed, there is very good reason for supposing that the industry has over-invested since the boom year of 1964.
I wonder whether we shall be over-invested in electricity by 1975.
I accept that we probably over-invested in the private sector abroad during the two years prior to 1965.
If companies' profits to capital ratio is regulated at a certain percentage then there is a strong incentive for companies to over-invest in order to increase profits overall.
Because of the confusion between consuming and investing, they may over-invest or under-invest compared to what they would do if the investment were clear.
It is because of this consumption component that people tend to over-invest.
