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The theories of Malthus and New growth are in contrast with each other. For Malthusians, rate of population is taken to be a matter of concern, while for believers of New Growth theory, population is a matter of solution.
People are considered as economic resources on whom requirements, needs of the society, various demands of the society and other scientific discoveries are made. It is attributed to these features that technological advancement is taken into consideration and GDP is counted accordingly.
So, it is courtesy to this growth in population, that technological advancement can be attributed to, resulting in increasing GDP rates of the country. So, rather than a negative point, population growth can be taken into account as a cause for higher labor productivity, higher rates of GDP and a more advanced nation. If this growth is not there, it will cause a major issue for the economy.
What is notable is within limited resources, how people can make the most of it and how the best of products are created. Hence, it can be stated that productivity levels of individuals are unlimited.
Thus, it is essential to have a detailed idea of the basis of comparison.
Links of Previous Main Topic:-
- Definition of Economics
- Economic Problem
- Market Equilibrium
- Employment and Unemployment
- Economic Growth Macroeconomics
- The Basics of Economic Growth
- The Magic of Sustained Growth
- Economic Growth Trends
- How Potential GDP Grows
- Why Labor Productivity Grows
- Preconditions for Labor Productivity Growth
- Physical Capital Growth
- Human Capital Growth
- Technological Advances
- Growth Theories Evidence and Policies
- Classical Growth Theory
- Neoclassical Growth Theory
- New Growth Theory
- New Growth Theory Versus Malthusian Theory
Links of Nextย Macroeconomics Topics:-
