Question

Using a diagram, outline why Malthus believed technological improvements would not improve living standards. Explain your reasoning why you agree or disagree with Malthus’s analysis.

Answer 1

SOLUTION:-

* According to Mathusian analysis the technological progress will not improve the living standard of people because according to Malthus when technological progress takes place it will lead to more population growth and the standards of living or consumption of individuals will not increase as a result of technological advancement.

* The consumption of individuals will remain at a subsistence level. The basic assumption of Malthusian model is that both the income and the popluation growth are positively related.

* When the income of the individuals increases it will lead to increase in the population growth. Thus According to Malthus theory whenever the technological advancement takes place it will eventually lead to the popluation growth .

* The increased productivity as a result of technological progress will result in more popluation growth and the consumption of individuals will remain the same and the standard of living of people wil also remain the same.

* Another important point in Malthusian concept is that popluation density is used as measure of technology and productivity growth and income of the individuals are positively related.

* Technological progress is slow and whenever technological progress happens there is proportionate increase in the population growth and thus the output per capita will remain unchanged or constant.

* In the diagram given below the effect of technological progress(z) in both short run and long run is explained. When there is technological progress the population grows, land available to the workers decreases and the consumption remains the same.