The Ultimate Resource

After nearly 40 years, China is ending its one child policy.  I praise this move (although I wish it was a complete repeal rather than just changing the quota).  China is facing an aging population, and aging populations are less productive.

It is also important to remember that an increase in population is not just another mouth to feed, but also another creative mind, another pair of working hands, another input for growing the economic pie.

This fact is often lost upon the immigration restrictionists (protectionists?).  When immigrants enter a nation, economically speaking it is no different from a child being born or a person graduating college.  By increasing the amount of labor (a resource), it helps increase the size of the economic pie.

I suspect China’s actions to allow two children per family will help lift its growth and bring more people out of poverty in the long run.  Likewise, increased immigration will help lift economic growth and bring more people out of poverty.

One thought on “The Ultimate Resource

  1. The modern ponzi finance model requires the constant growth of population or the whole thing comes crashing down. The deflation boogie man.

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