October 15, 2006
Comment on Overpopulation-BECKER
Posner makes as good a case as can be made for worrying a lot about overpopulation, but I do not believe the case is good enough. I will argue that at this time, in the United States and most other parts of the world, greater population has greater benefits than costs. I will to some extent be reiterating arguments I made in my blog posting on October 3, 2005.
In considering the effects of greater population it is important to distinguish clearly between more rapid population growth and larger population levels. I start first with an evaluation of population growth rates. With the present system of financing social security and medical care of the elderly, faster population growth helps since it increases the number of working individuals relative to the number of retired persons. For taxes on workers provide the revenue to finance the spending and care of retirees. So with greater numbers of younger person relative to older persons, tax revenues would rise relative to payouts to the elderly. To be sure, I have argued in previous blog postings for a different system of financing income and health care to the elderly, but until we get these reforms, additional younger persons help reduce the burden of the elderly. Although the present system has clear flaws, it is not a ponzi scheme in the sense that it could continue for many, many generations if there are enough younger persons with the incomes to be taxed.
Younger persons also produce a disproportionate share of the new ideas and products, whether in science, business, or the arts. Declines in their numbers, absolutely and even relatively, lead to more stagnating societies. These innovations have been good for economies and culture, unless one believes that the typical person in the world was better off 250 years ago.
Population grows faster in a country mainly if either fertility is higher or more people immigrate into the country. Both contribute to an increase in the number of younger persons, although the fertility effects on the number of working individuals are delayed. Immigration has an immediate effects since most immigrants are young and of working ages, but there is opposition in most countries to large numbers of immigrants. Higher fertility will tend to negatively affect how much parents and societies invest in younger persons because the total cost of these investments become greater where there are more children to invest in. This is a serious consideration for many African countries, or Asian countries like Bangladesh, with very high birth rates, but is much less important in Europe or Japan or China where birth rates are low. Even in the United States the typical family has only a little less than two children, so the trade off with investment per child is not a big factor here either.
Although, of course, faster population growth will lead to larger populations, population level effects differ from these population growth effects. I believe there are two fundamental positive aspects of larger populations. The greater the population, the larger the market for new products, such as medical drugs, iPods and other high tech innovations, and for still other new products that depend on larger markets. This has been convincingly demonstrated in studies of pharmaceutical innovations-for example, the larger the number of elderly persons, the more new drugs developed to help diseases of the elderly (see e.g., Acemoglou and Linn, “Market size in Innovations: Theory and Evidence From the Pharmaceutical Industry”, Quarterly Journal of Economics, August, 2004.).
In addition, the larger is the level of population, the greater the scope for the division of labor, either within a country, or worldwide when considering world population levels. It might seem that with 6 billion persons on the earth, there is more than enough population for the finest degree of specialization and division of labor. However, the growth of global trade has made the gains from increasing degrees of specialization and trade much greater than in the past. Outsourcing and the rapid growth of China and India are just examples of this development.
The advantages of greater population are more questionable for poor dense populated countries with high birth rates. Bangladesh, Pakistan, and some African nations fit this description. Yet, I would not overemphasize this point since India, which is a rather densely populated country with only limited high quality land and other natural resources, showed that it could grow rapidly once it reformed economic policies. So I am doubtful whether India's large and rapidly growing population had in the past hindered its growth in per capita incomes or improvements in health of the average Indian family.
To be sure, the main focus nowadays of the opponents of greater population is the effects on the environment, both within nations, and globally through greenhouse warming and other forms of global pollution. It is interesting how the arguments of Malthusians and neo-Malthusians have shifted over time as each of their predictions bit the dust. Yet while these falsified predictions makes one alert to the dubious assumptions of many Malthusian-like arguments, it does not mean there is no reason to be concerned about harmful environmental effects.
Clearly, with per capita income, technologies, and pricing held fixed, greater population would lead to increased congestion and emission of more harmful pollutants. But there is no reason to believe that these variables will be held fixed. Per capita income will be growing, and given my arguments above, perhaps even faster with larger populations. Then the so-called Kuznets environmental curve will kick in. This curve summarizes a well-documented empirical relation that as a country's income begins to grow, at first its environment gets worse. Then, however, the environment gets better as the country spends more on reducing pollutants and has better technologies to do this.
My argument above also suggests that technologies to control pollution are likely to be rising in population, country or worldwide, because the market for these technologies from both the private sector and from governments would expand. The error made in many of the scariest environmental scenarios is the implicit assumption that technologies are held fixed as population and other variables of environmental concern increase. In fact, technologies progress rapidly in the modern world, and more rapidly as population is larger or per capita incomes are larger. So while I am not claiming to have disposed of the many legitimate environmental concerns of greater population, I do believe that they are considerably exaggerated by neglecting the Kuznets curve, and the effects of exogenous and induced technological advances.
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Comments
I don't know if that really answers Posner's (and my) concerns. IANAE*, but I don't think you need to be to have concerns about the basic limitations on water, food, arable land, and land for living on. If anything, it's my opinion that focus on the financial over-complicates the issues involved here.
Certainly innovations in technology and financing make a ..
difference - witness the success of Grameen Bank - but focus for a minute on the huge numbers of young men in China and India who are unemployable, and will never marry (thanks to the gender imbalance caused by sex-selective abortion there). I can only see two ways forward for them: emigration, or the Army - neither of which bode well for neighbouring countries.* I Am Not An Economist.
Posted by brian t at October 16, 2006 7:13 AM | direct link
"...Yet, I would not overemphasize this point since India, which is a rather densely populated country with only limited high quality land and other natural resources, showed that it could grow rapidly once it reformed economic policies. "
How much of India's growth has been the result of its own economic policies or the result of foreign investment, a combination of both, or other factors? And how much of India has actually seen "growth," or are we looking at "growth" as a generalized concept which doesn't consider the growth disparities in India?
"So I am doubtful whether India's large and rapidly growing population had in the past hindered its growth in per capita incomes or improvements in health of the average Indian family."
I'm not doubtful of this at all. Where were the jobs? Why did so many of its educated leave for other countries? What is the health of the average Indian family? Is it better in more populated parts of India? Someone must have data on this.
Perhaps I'm missing something here, but I was under the impression that the overpopulation has had a negative impact on the quality of life and economy in India, while other factors, unrelated to population size, have countered these effects and brought positive economic changes in some areas in India.
Specifically, what is the effect of India's relatively large resources for training people in the sciences, and its education system? What about the private businesses that have invested in India? I am not an economist either.
Posted by shaum at October 16, 2006 1:21 PM | direct link
Brian T
I think the focus on the financial aspects of the problem is useful, though complicated, because the price of resources influences the rate they are pulled out of the ground, and the timing at which recycling and substution of alternative resources and technologies becomes economic. It is dangerous to over-simplify complex things like resource allocation.
Posted by ben at October 16, 2006 8:57 PM | direct link
Basil Jason Go
Metro Manila, Philippines
More Furious than a Forest Fire
People who have read population control articles have probably heard of the English economist Thomas Malthus who proposed that population increases at a geometric rate whereas food supply grows at an arithmetic rate if factors are held constant. Probably, Malthus’ Principle of Population is not so improbable after all when studies show that approximately 790 million people in the developing world are still chronically undernourished, almost two-thirds of whom reside in Asia and the Pacific.
In the Philippines, due to the Church’ heavy opposition against artificial birth-control methods and the masses’ lack of sex education, the problem of overpopulation continues to persist. What makes matters worse is that the natural family planning methods are somewhat hard to instill in the minds of the Filipinos especially those that are not so educated. What solution do I propose then? I believe that the government should start implementing a policy similar to that of China’s one-child per family. I repeat similar and not exactly, since what right do we have to impose how many children a couple would want to have? Hence, I am not saying that the government should immediately implement the one-child per family policy here. I think it would be best if the Filipino community would first agree upon a consensus on the number of children they would want to have.
In line with this, the current tax system in the Philippines of giving a tax exemption of P8,000 per dependent child not exceeding four seems not to be very effective since there are a lot of people still have more than four children. Instead, I think it would be better if from the agreed upon number, the government can give more incentives to those who follow the quota. Given this, it would be more attractive for the people, especially the masses, to have lesser children. For instance, if the set quota of children is four and the family only has two children, then there should be an additional incentive for this family. Unlike China’s one-child policy, I believe that there should be no penalty if a couple exceeds the quota since the couple has the right to have as many children as they want. Although this entails a lot of discipline for those who will implement it, I believe that this a step in the right direction for curbing the population growth in the Philippines.
Currently, the Philippine population is around 89 million, growing at a rate of 1.8 percent. In ten years, the population will reach 107 million, an increase of about 20 percent. Clearly, the figures speak for themselves. With the present population growth rate, the supply of resources such as food, shelter and clothing won’t be able to meet demand. Population growth is like a forest fire, we have to do something about it now. If we don’t, when is the right time?
Posted by Basil Jason Go at October 19, 2006 7:45 AM | direct link
Basil Jason Go
Metro Manila, Philippines
More Furious than a Forest Fire
People who have read population control articles have probably heard of the English economist Thomas Malthus who proposed that population increases at a geometric rate whereas food supply grows at an arithmetic rate if factors are held constant. Probably, Malthus’ Principle of Population is not so improbable after all when studies show that approximately 790 million people in the developing world are still chronically undernourished, almost two-thirds of whom reside in Asia and the Pacific.
In the Philippines, due to the Church’ heavy opposition against artificial birth-control methods and the masses’ lack of sex education, the problem of overpopulation continues to persist. What makes matters worse is that the natural family planning methods are somewhat hard to instill in the minds of the Filipinos especially those that are not so educated. What solution do I propose then? I believe that the government should start implementing a policy similar to that of China’s one-child per family. I repeat similar and not exactly, since what right do we have to impose how many children a couple would want to have? Hence, I am not saying that the government should immediately implement the one-child per family policy here. I think it would be best if the Filipino community would first agree upon a consensus on the number of children they would want to have.
In line with this, the current tax system in the Philippines of giving a tax exemption of P8,000 per dependent child not exceeding four seems not to be very effective since there are a lot of people still have more than four children. Instead, I think it would be better if from the agreed upon number, the government can give more incentives to those who follow the quota. Given this, it would be more attractive for the people, especially the masses, to have lesser children. For instance, if the set quota of children is four and the family only has two children, then there should be an additional incentive for this family. Unlike China’s one-child policy, I believe that there should be no penalty if a couple exceeds the quota since the couple has the right to have as many children as they want. Although this entails a lot of discipline for those who will implement it, I believe that this a step in the right direction for curbing the population growth in the Philippines.
Currently, the Philippine population is around 89 million, growing at a rate of 1.8 percent. In ten years, the population will reach 107 million, an increase of about 20 percent. Clearly, the figures speak for themselves. With the present population growth rate, the supply of resources such as food, shelter and clothing won’t be able to meet demand. Population growth is like a forest fire, we have to do something about it now. If we don’t, when is the right time?
Posted by Basil Jason Go at October 19, 2006 7:47 AM | direct link
Clearly, the figures speak for themselves. With the present population growth rate, the supply of resources such as food, shelter and clothing won’t be able to meet demand.
No, they really don't speak for themselves Basil. It isn't at all clear why you believe an extra 20% of people will produce a crisis, especially since similar growth has usually occurred elsewhere without running into the brick wall of resources you propose. Without any access to evidence other than knowledge that the Philippines is capitalist and democratic, I confidently predict living standards will increase for all or nearly all over the period you think a crisis will occur.
Posted by ben at October 19, 2006 3:00 PM | direct link
I recommend reading the studies done by Skinner on the effects of population on a groups social controls. The studies found that as the population grows, holding resources constant, social norms broke down. I agree that both technology and natural resources are the most important dictates of a countries threshold for population to be sustained. This of course is from environmental basis for which I'm not conserned. When the population threshold is crossed the population will decrease. My conserns are for the social norms of the people. Take Africa for example. The population is to large for the amount of resources to sustain everyone so you have war lords that recruite children at 8 years old and train them to butcher other people. Those children grow up to be rapist who produce more 8 year old butchers. The problem in this surcumstance is that there are no more social controls and thus nothing to fix the problem.
Posted by joshua bay at October 19, 2006 3:09 PM | direct link
DR. CHRISTIAN C. SZELL, invented VITAZEST vitamin water in June 1944, at the studgart mills distillery, after which, he fled to Uraguay, fleeing the allied troops in Germany.
This water was invented to help German soldiers win on the battlefield. but Soviet advances prevented full manufacture of VITAZEST untill 1976.
http://www.geocities.com/dr_christian_christ_szell/index.html
Posted by Dr. Christian C. Szell at October 20, 2006 6:33 AM | direct link
thanks for your post.perhaps you will like abercrombie
Posted by Anonymous at June 29, 2009 3:47 AM | direct link
