44: Economic Effects of Changes in the Size and Structure of Population

Tuesday, February 07, 2012

Arguments for the Growth of Population

  • It increase labour force
  • It fasten the mobility of labour
  • It increase demand for goods and services
  • It leads to expansion of the home market
  • It encourages new investment and increase job opportunities

Arguments against the Growth of Population

  • It requires a higher government expenditure on infrastructure and basic facilities
  • It makes the resources more scarce
  • There is a greater chance for increased poverty
  • It encourages the production of more consumer goods at the expense of capital goods
  • It leads to social problems like overcrowding and congestion
  • It is embedded with mass unemployment
  • It pulls up the price level

Economic Effects of a Higher Working Age Group

  • It increases output of goods and services
  • It increases the national output
  • It ensures a higher economic growth
  • It improves  standard of living
  • It eliminates poverty
  • It increases the production of more capital goods
  • Government has to spend on providing jobs for its citizens

Economic Effects of a higher Dependent Age Group

  • It leads to a lower standard of living
  • It leads to poverty
  • It increases government spending on health and education
  • It requires production of more consumer goods
  • It leads to a lower rate of economic growth

Economic Effects of an Ageing Population

  • More resources for the production of consumer goods and services for the aged
  • Higher government expenditure on health care
  • Higher government expenditure on retirement pensions
  • Low rate of economic growth
  • Difficulties in coping with modern technology

Effects of geographical distribution of population

  • Separation of labour force into small groups
  • Difficulties in providing social and economic facilities
  • Unnecessary duplication of works and resources
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