If Population Growth Increases Real Money Holdings Will Result
Ways To Increase Population Growth
If Population Growth Increases Real Money Holdings Will Affect
Jesse Money
The Street

This article throws light upon the twelve main consequences of population growth. The consequences are: 1. Investment 2. Overuse of Resources 3. Urbanisation 4. Per Capita Income 5. Standard of Living 6. Agricultural Development 7. Employment 8. Social Infrastructure 9. Labour Force 10. Capital Formation 11. Environment Rapid Population Growth Leads to Environmental Damage 12. World Economy.

Developing markets have witnessed higher growth rates owing to rising population and increasing consumer spending and consequent increase in beverage consumption. PA based Crown Holdings, Inc. Exponential growth According to the Food and Agricultural Organization of the United Nations (FAO), the global population is expected to increase by around 2.3 billion people between now and 2050. Although this is a slower rate of growth than the one seen over the past 40 years, it is still a 30 per cent increase in the number of people who.

Consequence # 1. Investment:

Faster population growth makes the choice more scarce between higher consumption now and the investment needed to bring higher consumption in the future. Economic development depends upon investment. In UDCs the resources available for investment are limited. Therefore, rapid population growth retards investment needed for higher future consumption. https://campclever.amebaownd.com/posts/22883500.

Consequence # 2. Overuse of Resources:

Rapid population growth tends to overuse the country’s natural resources. This is particularly the case where the majority of people are dependent on agriculture for their livelihood. With rapidly rising population, agricultural holdings become smaller and unremunerative to cultivate. There is no possibility of increasing farm production through the use of new land (extensive cultivation).

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Consequently, many households continue to live in poverty. In fact, rapid population growth leads to the overuse of land, thereby endangering the welfare of future generations. Even in countries where natural resources are untapped such as Brazil and other Latin American countries, rapidly increasing population makes it difficult to invest in roads, public services, drainage and other agricultural infrastructure needed to tap such resources.

Consequence # 3. Urbanisation:

With rapidly growing population, it becomes difficult to manage the adjustments that accompany economic and social change. Urbanisation in UDCs creates such problems as housing, power, water, transport, etc. Besides, growing population threatens permanent environmental damage through urbanisation in some rural areas.

Consequence # 4. Per Capita Income:

The effect of population growth on per capita income is unfavourable.

The growth of population tends to retard the per capita income in three ways:

(i) It increases the pressure of population on land;

(ii) it leads to rise in costs of consumption goods because of the scarcity of the cooperant factors to increase their supplies; and

(iii) it leads to a decline in the accumulation of capital because with increase in family members, expenses increase.

These adverse effects of population growth on per capita income operate more severely if the percentage of children in the total population is high, as is actually the case in all UDCs. Children involve economic costs in the form of time and money spent in bringing them up.

But they are also a form of investment if they work during childhood as is the case with the majority of families, and if they support parents in old age which is rare in the case of majority of children.

As these economic gains from having many children are uncertain, therefore a large number of children in the population entails a heavy burden on the economy, because these children simply consume and do not add to the national product. Another factor is the low expectancy of life in underdeveloped countries.

It means that there are more children to support and few adults to earn thereby bringing down the per capita income. Whatever increase in national income takes place that is nullified by the increase in population. Thus the effect of population growth is to lower the per capita income.

Consequence # 5. Standard of Living:

Since one of the important determinants of the standard of living is the per capita income, the factors affecting per capita income in relation to population growth equally apply to the standard of living. A rapidly increasing population leads to an increased demand for food products, clothes, houses, etc. But their supplies cannot be increased in the short run due to the lack of cooperant factors like raw materials, skilled labour, capital, etc.

Consequently, their costs and prices rise which raise the cost of living of the masses. This brings down further the already low standard of living. Poverty breeds large number of children which increases poverty further, and the vicious circle of poverty, more children and low standard of living continues.

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But Hirschman and Colin Clark opine that population pressures leading to lowering of standards will encourage the people of UDCs to work hard in order to improve their standard of living.

Consequence # 6. Agricultural Development:

In UDCs, people mostly live in rural areas. Agriculture is their main occupation. So with population growth the land-man ratio is disturbed. Pressure of population on land increases because the supply of land is inelastic. It adds to disguised unemployment and reduces per capita productivity further. As the number of landless workers increases, their wages fall. Thus low per capita productivity reduces the propensity to save and invest.

As a result, the use of improved techniques and other improvements on land are not possible. Capital formation in agriculture suffers and the economy is bogged down to the subsistence level. The problem of feeding the additional population becomes serious due to acute shortage of food products.

These have to be imported which increases the balance of payments difficulties. Thus, the growth of population retards agricultural development and creates a number of other problems discussed above.

Consequence # 7. Employment:

A rapidly increasing population plunges the economy into mass unemployment and under-employment. As population increases, the proportion of workers to total population rises. But in the absence of complementary resources, it is not possible to expand jobs. The result is that with the increase in labour force, unemployment and under-employment increases. A rapidly increasing population reduces incomes, savings and investment.

Thus capital formation is retarded and job opportunities are reduced, thereby increasing unemployment. Moreover, as the labour force increases in relation to land, capital and other resources, complementary factors available per worker decline.

As a result, unemployment and under-employment increase. UDCs have a backlog of unemployment which keeps on growing with a rapidly increasing population. This tends to raise the level of unemployment manifold as compared with the actual increase in labour force.

Consequence # 8. Social Infrastructure:

Rapidly growing population necessitates large investments in social infrastructure and diverts resources from directly productive assets. Due to the scarcity of resources, it is not possible to provide educational, health, medical, transport and housing facilities to the entire population.

There is over-crowding everywhere. As a result, the quality of these services goes down. To provide these social infrastructure requires huge investments.

Consequence # 9. Labour Force:

If Population Growth Increases Real Money Holdings Will Result

The labour force in an economy is the ratio of working population to total population. Assuming 50 years as the average life-expectancy in an under-developed country, the labour force is in effect the number of p