The world’s population is growing at an unprecedented rate. While some argue that population increases can be a good thing, others favor the idea that the world’s sources are not enough to match such an increase.
The proponents of population growth claim that the more people there are, the higher the production rate in a country. As productivity goes up, the total output in the economy goes up as well. Economic growth, in turn, enables people to access goods and services more comfortably, promoting improved living standards. Population growth will also hint at increasing demand for goods and services, which will signal producers to produce more.
What if the increase in population cannot be diverted to higher productivity like we mentioned above? There will be more people searching for work than there are available vacancies. The surplus labor that has come to exist because of population growth will have difficulty accessing jobs. Since these people will still need to be fed, there will be excess demand in the economy that cannot be met with increases in the supply side of the economy. This would mean supply falling short of demand, causing prices to increase.
Those who oppose population growth pose that the world’s natural resources are already scarce and will never be sufficient if population growth does not slow down. Energy, oil, and food prices will hike, leading to starvation and deprivation on a global scale. Wars will break out.
As a result, population growth can be a good thing if it is converted into productivity. If not, it will only mean poverty.
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