Under capitalism, what you have rather is too many goods to make a viable profit on of a certain type. And as this economic theory gets fleshed out, you also end up with related problems such as an overproduction of goods that people need but can't buy because they don't have enough money. The reason that things are produced under capitalism is not because they're needed, it's because they make a profit. Now, if no one needed any of them, they would never make a profit in the first place.