Economy, asked by raunit7169, 1 year ago

How did growth of population leads to unemployment

Answers

Answered by sona561
0
Think of people as any other resource. If a nation has a population of one, its GDP will be terrible because one person can only do so much. Add one more person, and the GDP improves, but still isn't great. Keep adding, and the population starts gaining some synergistic effects as more people allows for greater specialization and economic activities that require a certain level of consumers to be viable.

Once a population reaches a certain size, the synergistic effects start to fade as the population is fully specialized and there are fewer new economic activities that can be spurred by greater population. However, each additional person still contributes something to the GDP through both their work and consumption.

Like any other resource though, the value of having more starts to decline. Each additional person means more competition for jobs, more demand for housing, services, and other resources, and greater strain on infrastructure and the environment. With too high of a population, the population can't be fully utilized, meaning that each additional person will on average be less productive, but will be demanding and using certain amenities that need to be maintained.

I'm of the opinion that a population would have to be absurdly high to have a deleterious effect on GDP. Even unemployed people add to the GDP because they are still consumers. The deleterious effects on GDP would only come into play if the nation has to forgo nearly all other investments in order to support its population.

However, this ignores the environmental impact of overpopulation. Overcrowding would lead to the destruction of wilderness areas, unsustainable use of local resources, a rise in pollution of every type, and an overall decline in the quality of life. GDP does not measure any of these things and therefore would likely continue to climb even as life for individuals became worse and society became less sustainable.
Answered by aastha15das
0

Think of people as any other resource. If a nation has a population of one, its GDP will be terrible because one person can only do so much. Add one more person, and the GDP improves, but still isn't great. Keep adding, and the population starts gaining some synergistic effects as more people allows for greater specialization and economic activities that require a certain level of consumers to be viable. Once a population reaches a certain size, the synergistic effects start to fade as the population is fully specialized and there are fewer new economic activities that can be spurred by greater population. However, each additional person still contributes something to the GDP through both their work and consumption. Like any other resource though, the value of having more starts to decline. Each additional person means more competition for jobs, more demand for housing, services, and other resources, and greater strain on infrastructure and the environment. With too high of a population, the population can't be fully utilized, meaning that each additional person will on average be less productive, but will be demanding and using certain amenities that need to be maintained. I'm of the opinion that a population would have to be absurdly high to have a deleterious effect on GDP. Even unemployed people add to the GDP because they are still consumers. The deleterious effects on GDP would only come into play if the nation has to forgo nearly all other investments in order to support its population. However, this ignores the environmental impact of overpopulation. Overcrowding would lead to the destruction of wilderness areas, unsustainable use of local resources, a rise in pollution of every type, and an overall decline in the quality of life. GDP does not measure any of these things and therefore would likely continue to climb even as life for individuals became worse and society became less sustainable.
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