The Economics Book

(Barry) #1

68


POPULATION


GROWTH KEEPS


US POOR


DEMOGRAPHICS AND ECONOMICS


IN CONTEXT


FOCUS
Growth and development

KEY THINKER
Thomas Malthus (1766–1834)

BEFORE
17th century Mercantilist
thought argues that a large
populace benefits the economy.

1785 French philosopher
Marquis de Condorcet
argues for social reform
to raise living standards.

1793 English philosopher
William Godwin advocates
the redistribution of national
resources to help the poor.

AFTER
1870s Karl Marx attacks
Malthus’s ideas, characterizing
him as a reactionary defender
of the status quo.

1968 US ecologist Garrett
Hardin warns of the dangers of
overpopulation in his essay
The Tragedy of the Commons.

D


uring the 18th century
enlightened thinkers
began to consider the
possibility of improving society’s lot
through wise social and economic
reforms. The British economist
Thomas Malthus was a pessimistic
voice in this optimistic era,
claiming that the growth of
populations dooms societies to
poverty. Malthus argued that the
human sex drive causes faster and
faster expansion of the populace.
Food production would not keep up
because of the law of diminishing
returns: as more people work on a
fixed amount of land, less and less

output is added. The result is
an ever-widening imbalance
between the number of people
and the supply of food.
However, there is a
counteracting force. Malthus
saw that malnutrition and disease
caused by a more limited food
supply would lead to increased
mortality and stop the imbalance
from getting out of control. Less
food to go around would also mean
fewer children could be supported,
and the birth rate would fall. This
would lessen the pressure on land,
restoring living standards.

The Malthusian trap
As well as preventing total
starvation, changes in birth and
death rates stop the population
from benefiting from higher living
standards for very long. Suppose
that the economy has a windfall
through the discovery of land. Extra
land gives a one-time boost to food
production and provides more
food per person. People become
healthier and the death rate falls.
Higher living standards allow for
more children. Together, these
forces add to population growth.
Food production cannot keep up,
and the economy reverts to the

Survivors of an earthquake in
Pakistan receive food handouts.
Malthus opposed any such relief—
to assist the destitute would only
encourage them to have more children.
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