The Neo-Malthusian Population theory assumes that poor nations will never be able to rise much above subsistence levels unless they engage in preventive population checks, if not positive checks.

1445 Words May 28th, 2004 6 Pages
As stated the Neo-Malthusian population theory claims that poor nations are stuck in a cycle of poverty which they can't get out of unless some sort of preventative measures of population checks are engaged. The Malthusian model was developed two centuries ago by a man named Thomas Malthus. Malthus's model is based upon a relationship between both population growth as well as economic development. Empirical studies now-a-days show that the population theory model is quite flawed because of many factors that render even the two main variables in the theory (population growth and level of per-capita income) not fit to be used within the same conceptual frame work as there is no clear link between them. Egypt and Kuwait are perfect …show more content…
Quite simply countries that have a higher per capita income are assumed to be able to generate a higher savings rate and rationally more money is available for investment. It is assumed though that beyond a certain point in per capita income is supposed to level off and in some cases decline as new investments are made and more people are forced to work with fixed amount of land and resources. This is called the point of diminishing returns in the Malthusian model, the aggregate income growth is analogous of the total production curve, at least that's how the basic theory of production goes.

Quite simply when the population is growing faster than actual income, per capita will always fall, similarly when income grows faster than population it causes the equilibrium per capita income to rise. The pretence of the theory states that poor nations will never be able to rise above subsistence levels of per capita unless they apply a system of checks (birth control) upon the population. Without birth control nature has it's own positive checks such as starvation, disease, wars that will do what humans fail to accomplish in birth control.

The Malthusian trap as simple and as appealing as a theory concerning the relationship between population growth and economic development goes is based on simplistic assumption that Todaro and anyone with logic can curtail do not stand the test of empirical

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