Critically examine the optimum population theory.
Answers
The optimum theory of population was propounded by Edwin Cannan in his book Wealth published in 1924 and popularised by Robbins, Dalton and Carr-Saunders. Unlike the Malthusian theory, the optimum theory does not establish relationship between population growth and food supply. Rather, it is concerned with the relation between the size of population and production of wealth. The Malthusian theory is a general theory which studies the population problem of a country in keeping with its economic conditions. Thus the optimum theory is more realistic than the Malthusian theory of population.
Statement:
The optimum population is that ideal size of population which provides the maximum income per head. Any rise or diminution in the size of the population above or below the optimum level will diminish income per head. Given the stock of natural resources, the technique of production and the stock of capital in a country, there is a definite size of population corresponding to the highest per capita income.
Other things being equal, any deviation from this optimum-sized population will lead to a reduction in the per capita income. If the increase in population is followed by the increase in per capita income, the country is under-populated and it can afford to increase its population till it reaches the optimum level. On the contrary, if the increase in population leads to diminution in per capita income, the country is over-populated and needs a decline in population till the per capita income is maximised.