Monday, March 24, 2014

Explain two economic issues related to population growth.

Population growth can result in many economic issues, however, we will focus on these two: economic dependency and unemployment.


Economic dependency


a) When a country experiences population growth, this can result in a larger labour force in the future. However, the initial increase in population can put a strain on the country's resources. This because between the ages of 0 to 16 or 18 (depending on the labour laws of a country) these children are dependent on their parents, other caregivers, or the state.


b) The financial strain on the resources of a country can extend to its educational, health, housing, and infrastructural facilities. Therefore, government and the persons in large families will have to allocate scarce resources to providing and obtaining access to more of these facilities.


Unemployment


a)  In the future, when the population is grown and trained in their desired professions; they may be unable to access jobs because the aging population (their parents and other adults) are still holding these positions. This younger section of the labour force may subsequently become discouraged and either stop looking for work or migrate in search of better employment opportunities (brain drain).

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