Introduction
Population growth is different in different systems of the world economy. This fact is the basis for judging the optimal population and economic growth. Due to uneven population growth, the share of individual regions in the world’s total population has changed dramatically. At the moment, more than seven billion people live on Earth. Several approaches must be considered to analyze the relationship between economic and population growth.
Malthusian Approach
The first approach is associated with the postulates of Thomas Malthus, an English priest and economist. Rapid population growth reduces the increase in savings and savings, increases the labor force’s growth, reduces the labor force’s quality, and ultimately slows the growth of Gross Domestic Product, or GDP per capita (Allen 2). According to him, if population growth is not limited, it will grow exponentially when resources grow only in arithmetic progression. Demographic growth is corrected only by preventive and destructive social factors.
Smithian Approach
The second approach will be the opposite of the first; demography is a function of economic and social development. This approach is consistent with Adam Smith’s provisions; in his opinion, population growth can increase economic development and contribute to technological progress (Allen 16). Nor does growth lower living standards, as food costs decrease over time. Current problems, like hunger or unemployment, can be caused by factors unrelated to population growth (Allen 16). Nevertheless, restrained population growth is more beneficial in several countries with limited resources.
Conclusion
However, one should not draw an unambiguous conclusion that if the population growth rate were not so high, this would favor economic growth. It is impossible to ignore the fact that population growth contributes to GDP. There is a stimulation of capital investments, technical innovations, development of mineral resources, and production output. Many factors influence the correlation between economic growth and population growth, including the general economic situation.
Work Cited
Allen, Robert C. “A review of Gregory Clark’s Farewell to Alms: A brief economic history of the world.” Journal of Economic Literature, vol. 46, no. 4, 2008, pp. 1–35. Web.
