Why does low population growth foster econ growth? growth, people, around

homie

Seems like it would be the other way around since more people = more output even if the pie is split more ways.

segalm

Because GDP per capita goes up.

Iginla2011

which growth theory is this? is it the one where womens participation in the labor force depends on the opportunity cost of having children or something?

redskins44

Seems like the book seems to think that the less children you have the more work you will get accomplished because there is less holding you back..

Wendy01

Are you referring to the Classical Growth Theory?
Tech Up = Labor productivity Up = population growth Up = real GDP/per labor hr Down
Wages Down = Population Down= Cycle continues
So I dont think population growth drives the economic growth. Am I missing something?

BelalM

who says low population growth fosters ecnomic growth. there are many theories and these theories dont’ quantify how much of population growth is ideal.
but if you ever read production function (cobb douglas), then you’ll know that, that the answer really depends. as long as your capital per labor output is growing you are going to have growth. now if u have more ppl, more research and more tech, its possible you can employ the new population to grow ur capital per person at a much faster rate than population growth. Ex. USA / China
but if u have less people but everythign else remain constant then ppl enjoy more. EX. Luxemborg.

jarobi04

It was from a QBank question and did not reference any of the theories. It just made that statement as a matter of fact

strikethree

screw qbank.

kkn006

I believe this is referring to the Neoclassical Growth Theory that states that one of the main drivers of per capita GDP growth is the opportunity cost of women’s time. If the opportunity cost is high more women will work in lieu of raising children, therefore, contributing to GDP through working and contributing on a per capita basis by not having children.

fishmarket

yeah, but neoclassical also says that with improved healthcare, people live longer, so it kind of cancels that out.