Saturday, June 09, 2007

Population and Poverty

By Michael Miller
Acton Institute Commentary

Of course the common perception is that population growth causes poverty, so reducing population should also reduce poverty. But the facts do not bear this out. Neither do basic economics.

The idea that population growth causes poverty comes from the ubiquitous zero-sum-game fallacy: the idea that the economy is a pie with only so much to go around. But the economy is not a pie -- economies can grow, and population growth can actually help development. A growing population means more labor, which along with land and capital are the main factors of production.

Behind much of the zero-sum thinking concerning population is the theory of Thomas Malthus, who in 1798 predicted the earth was heading for an impending food shortage because population was growing geometrically while the food supply was only increasing arithmetically. Thus, he predicted that the number of people would soon outstrip the food supply and lead to mass starvation by about 1850. Among his mistakes was the failure to account for technology -- a product of human creativity.

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Despite the evidence, the World Bank continues lavishing American tax dollars on population control when that money could be put to better use on such things as infrastructure, telecommunications, and fighting corruption. Perhaps the World Bank has become captive to ideologues more concerned with the eugenic visions of Planned Parenthood than with actually helping families climb out of poverty.

Literally billions of dollars have been spent to reduce populations in developing countries, but have yielded no real economic progress. We know the factors that create economic growth and development: consistent rule of law for all citizens, property rights, sensible regulation, and a culture that encourages and rewards entrepreneurial behavior. These traits have never existed perfectly anywhere on earth, but the degree to which they have been present reflects the degree to which prosperity has been achieved. Conversely, where they remain absent -- as in much of the developing world today -- poverty and misery are found in their stead.

Many of the same people who protest the “cultural imperialism” of multi-national corporations like McDonalds, Coca-Cola and Wal-Mart vigorously support forcing the Western, secular sexual morality of contraception and abortion on women in Latin America, Africa and Asia -- many of whom view them as moral evils and a violation of their dignity. (more)