Saturday, June 02, 2007

Population and Economics

A steadily growing population provides the most fruitful economic environment. We learn this by studying the alternatives: an unsteadily growing population is synonomous with lurches in supply and demand, leading manufacturers into erratic business cycles; a population which does not grow at all cannot support the "legacy" costs of retirees, and more importantly, leads to excess management at top levels; a population growing too quickly leads to inflation and shortages; a shrinking population creates a local exodus of talent, and a global shortage of labor.

So the best route to prosperity is a steadily growing, slowly growing, population.

But would that lead to global over-population? Not at all. Since the writings of Thomas Malthus, the question of over-population has resurfaced time and again. Yet we see that, at the present time with earth's population over six billion, we are currently producing too much food, not too little. Food shortages and starvation are not caused by over-population, but by bad government. Likewise, resource management informs us that clean water and air can support billions more than are currently living on the planet. A population of twenty or even thirty billion is easily sustainable, with proper environmental stewardship. The vast amounts of uninhabited, but habitable, land ensure that we could avoid over-crowding. We are nowhere near the "carrying capacity" of our habitat. We simply need better use of resources.