Question

advantages of population growth

Answer 1

A growing population can generate economic growth. The birth of more people equates to a greater number of parents investing in their youth. Increased purchases in products such as food, clothing, education-related expenses, sporting goods and toys feed the economy. Parents with small children purchase larger homes with more bedrooms and bathrooms to ensure they have enough room for their children. Construction of larger homes feed the building and home improvement industries economically. As the population grows, so does economic spending.

Answer 2

Benefits and Advantages of an Increasing Population of a Country!

The consequences of a growth in a country’s population depend on its cause, size of population relative to optimum population and the rate of population growth.

Possible benefits of an increasing population are listed below:

i. If the population is above the optimum size, the country will be able to make better use of its resources.

ii. The size of markets will increase. This should enable firms to take greater advantage of economies of scale.

iii. There may be an increase in factor mobility if the rise has resulted from an increase in the birth rate or immigration. Expanding industries can recruit new workers to the labour force. These people are likely to be familiar with new ideas and methods. If this is the case, firms’ training costs will be reduced.

iv. Extra demand will be generated. This is likely to stimulate investment and this may lead to introduction of new technology.

v. A rise in the labour force presently due to net immigration and in the future, caused by a rise in the birth rate. Net immigration will bring in more workers. More children being born will increase the dependency ratio in the short term but in the long term, will result in more workers.