As per this theory, the growth in GDP rates is only a temporary factor, and there is a particular subsistence level to which it can rise. In case, it rises beyond that respective level, it is immediately followed by a population explosion that reduces its level to its original point. This is known as Classical Growth Theory and has been proposed by economists of 18th and 19th century – Robert Malthus, David Ricardo, Adam Smith.
Specifically proposed by Malthus, this is known as Malthusian theory and has been influenced to a great extent by Charles Darwin’s theory of Evolution by Natural Selection.
Modern Day Malthusians and their beliefs:
According to current followers of Malthusian Theory, it can be seen that with current global population coming at 6.9 billion, chances are high that it will come up to 11 billion by 2050, and an approximate 35 billion by 2300. In such a scenario, the world resources will be depleted, resulting in decrease in GDP value as well as a return to the primitive stage of life. Hence, by this Malthusian theory, population growth can be reduced and contained to a great extent.
According to them, the primary reason for reduction in GDP is associated to a great extent to natural factors as global warming and climate change. Therefore, a detailed analysis of these factors is also important to ensure that you get a correct view of reasons behind variation of GDP.
Malthusian theory is one of the most followed theories in present times.
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