Question

In: Economics

Is population growth an impediment for economic development? Discuss the arguments in favour and against.

Is population growth an impediment for economic development? Discuss the arguments in favour and against.

Solutions

Expert Solution

The growth of the population has a positive and negative impact on economic development that depends upon the circumstances.
i). A large population can be great for economic development because the more people we have the more work can be done and more value can be created. So it may be good as farmers generally have lots of kids which mean more kids and more work.   
ii). Unfortunately, this is not so simple. In a rich country which is having abundant resources and money, population growth can be good but a country has limited resources and a large population may put pressure on the existing resources. More population needs more health care, more food, and educational services and many more things. Thus the growth of the population can be a mixed bag for economic development.
The main point is that economic development can be good for developed countries having abundant resources and money but it might be a bad sign for developing countries that have limited resources.


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