Tuesday

 Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed.

PART 9 The Real Economy in the Long Run
Chapter 25 of 36 Production and Growth
Section 19 of 21
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Things government can promote and strengthen to increase productivity and living standards include:
1· saving and investment
2· investment from abroad
3· education
4· health and nutrition
5· property rights and political stability
6· free trade
7· research and development
8· population growth
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8· Population growth
The on-going debate over the effects of a growing world population includes these topics:
a· Stretching natural resources
b· Diluting the capital stock
c· Promoting technological progress
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b· Diluting the capital stock
Some modern theorists of economic growth emphasize population growth effects on capital accumulation and use.
According to these theorists high population growth reduces GDP per worker because fast growth in the number of workers forces a thin spread of the capital stock.
Each worker ends up equipped with less capital to use for production.
A smaller quantity of capital per worker results in lower productivity and lower GDP and income per worker.
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This problem is most apparent with human capital.
Countries with high population growth have a large number of school-age children creating a heavy burden on the educational system.
There are more students per teacher and teacher qualifications are lower.
Educational attainment and productivity are adversely affected.
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Around the world, differences in population growth are large.
In developed countries including the United States, the population has risen only about one percent per year in recent decades
It is expected to rise even more slowly in future years.
At 1% growth rate population doubles every 70 years.
In Japan the population is actually decreasing.
In poor countries including in sub-Sahara Africa, the population has risen about three percent per year in recent decades and is expected to rise the same rate in future years.
At three percent growth rate population doubles every 23 years.
This rapid population growth makes it difficult to provide workers with the tools and skills needed to achieve higher productivity levels and higher living standards.
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Although rapid population growth is mostly considered not to the main reason less developed countries are poor some social scientists believe reducing the population growth rate would help these countries raise their living standards.
To achieve a goal of slower population growth China for many years regulated the number of children families could have.
In other countries many work to increase awareness of birth control techniques.
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Another way a country can influence population growth is through of one of the Ten Principles of Economics: people respond to incentives.
As with any decision, bearing a child has an opportunity cost.
When the opportunity cost rises, people choose to have smaller families.
Women with the opportunity to receive an advanced education and desirable employment tend to desire fewer children than those with fewer outside-home opportunities.
So, policies that increase equal opportunity for women can be one way for less developed economies to reduce the rate of population growth and raise their standards of living.
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China no longer regulates the number children families may have?
Grok:
Yes, the famous one-child policy —in place roughly 1979–2015— was officially ended in 2016, when the limit was raised to two children.
In 2021, it was further relaxed to a three-child policy, and shortly afterward —in July 2021— the government removed all numerical limits on the number of children couples can have.
The “social maintenance fees” penalties for having "extra" children were abolished.
As of 2026, Chinese families are legally free to have as many children as they want, with no upper limit enforced by the state.
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Current Situation (as of 2026)
The government is now actively encouraging larger families through pro-natalist policies.
Measures include:
-cash subsidies, e.g., annual payments for young children
-extended parental leave
-housing support
-free or subsidized preschool/childcare
-full reimbursement of childbirth costs
-a tax on contraceptives to make birth control relatively more expensive.
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Why the Change?
China faces a severe demographic crisis:
-very low birth rates, around 0.9–1.0 children per woman
-a shrinking population
-an aging society
-a shrinking workforce
Despite removing all restrictions and offering incentives, birth rates have continued to fall, and many young people cite high living costs, career pressures, housing expenses, and changing attitudes toward marriage and family as reasons for preferring no or few children.
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China regulated the number of children
Chuugoku wa kodomo no kazu o kisei shimashita