Macro “World’s Population” 01/31/2011
DQ: Are there too many people in the world?
Scarce resources ▯ tradeoffs
One scarce resource = LAND
Switzerland bribery to leave
Series of wars (Settlers Vs. Indians, Rwandan Genocide)
2 important economist: Thomas Malthus
essay on principles of population
Population grows at dif rates
Food grows at same rate
What happens if population goes above carrying capacity
BUT idea: to have new ideas, must come from critical mass
>#ideas, ># people
population density (to measure overcrowding) = #people/size of land
resources consumed per/person = total resources/#people
If you want more population, positive incentive
If you don’t, negative
Demand curves slope downwards, Price goes down Income goes up (spend more on more of item) 01/31/2011
After common era (1600) population started to increase
High population combined with high density does not necessarily result in rich country! (not whole story)
kramers rule somewhat true..
Kramer = optimistic
Malthus = Pessimistic
Whats going on now?
Street protests in Egypt for removal of pres hosni Mubarak
Mubarak declared pres for life
Tunisia has streep protests – works
Egypt does same thing
World is interconnected!
Despite the high levels of economic growth over the past few years, living conditions for the average
Egyptian remain poor
What does this mean for economic and political stability?
When people are poor they are willing to do things that they otherwise would be unwilling to do
Land per person in Egypt
Land fell by 2 times not three
A little successful in reclaiming land
BUT more people and fixed amount of land
Cities are growing in Egypt where farms used to be
Huge amounts of desertification
Why do Egyptians eat so much
Bread subsidized in Egypt 01/31/2011
Gov forced to provide difference in wheat
If food is cheap, population will rise
Impact on united states if Egyptian gov dropped subsidy on bread?
Farmers in west cost would be worse off because people wouldn’t buy their