Thread: Population and the Economy

How dependent is the economy on a stable, or growing world population? If the population plateaus, can the economy sustain? And if the population drops steadily? Or sharply?

I hear rumors about the baby boomer crisis and how the USA's economy is struggling partly because we don't have a young workforce to replace the old.

Is it fair to say that the modern economic structure was born during the drastic population ramp of the 1900's? Would that imply that it may require that ramp to function?

What would happen to the global economy with an effective world-wide single child policy, with each new generation half the size of the previous?

How dependent is the economy on a stable, or growing world population? If the population plateaus, can the economy sustain? And if the population drops steadily? Or sharply?

Well, if there is an explosion in population, it can be both good and bad. For one thing, there will be more demand for products, improving the economy. For another, there will be more unemployment and a lot of workers, which balances out.

Is it fair to say that the modern economic structure was born during the drastic population ramp of the 1900's?

Not necessarily. The economic structure is fundamentally capitalist, which can adapt to most situations. Population may change, but capitalists can adapt.

What would happen to the global economy with an effective world-wide single child policy, with each new generation half the size of the previous?

There'll be less workers, but also less demand.

It is all relative as Liongold said.

Less population = less demand = less supply needed = less workers needed. Vice versa with an increased population.

Originally Posted by TuiHayes

How dependent is the economy on a stable, or growing world population? If the population plateaus, can the economy sustain? And if the population drops steadily? Or sharply?

I hear rumors about the baby boomer crisis and how the USA's economy is struggling partly because we don't have a young workforce to replace the old.

Is it fair to say that the modern economic structure was born during the drastic population ramp of the 1900's? Would that imply that it may require that ramp to function?

What would happen to the global economy with an effective world-wide single child policy, with each new generation half the size of the previous?

In an idea capitalist world (my dream ), then nothing. The 'baby boomer crises' you are referring to, is a short-fall in social security funds. Basically, in the USA, starting in 2017, social security program expenses will exceed revenue, with the fund running out completely in about 2041.
Wikipedia has a good summary of the issue. http://en.wikipedia.org/wiki/Social_Security_debate_(United_States)