What is the relationship between population and economic growth?
It seems that populations and economic growth initially have an apparent connection; Without consumers, the economic growth may be difficult. However, a deeper overview creates questions about the benefits of large populations for short and long -term economic growth. For example, economic theories of a short -term population and economic growth can signal lower growth. However, long -term population growth may under most of the nation's economy to improve under most conditions. As with many economic studies, theories, hypotheses and arguments will undoubtedly continue to be controlled and debated. Population and economic growth in the first scenario may not be as strong as the other. For example, when a couple expects a child, they most likely save money until the date of birth. It removes money from the market when the couple places Money at the bank. Nor can payments made to a hospital or other birth group can also register on an economic scale.
when newIndividuals enter the economy, usually there is an impact in short -term economic growth. This is natural because the addition of more consumers to any given market should increase consumption, which tends to increase economic growth. However, other theory occurs when individuals in the economy are only for a short time. Any income they earn will go home to families or a savings account. In short, the individual is only interested in making money for a different purpose than to establish in a new economy.
Long -term populations and economic growth tend to always show the advantage of birth of children. As the child grows, parents most likely buy goods or services to help the child's development. The added consumption for these goods and services will increase the economy in the long run. In addition, a child usually becomes a citizen paying tax later in life. This adds taxes to government cash registers and again increases the economy of taxes, consumption and potential investments and creates a direct connection betweenby population and economic growth.
regressive population growth almost always hurts the economy. It is ironic that the economy can stop in the short term due to the growth of the population and also a decline in population. The purpose of the market economy is to find ways to promote growth that improves from the birth of children and resists the fluctuations of the overall population. In some respects, the market naturally adapts to these changes. Other times, a mixed economy may need government regulations of monetary and fiscal policy.