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A recent news article was published estimating that the world's seven billionth person is going to be born soon. This has re-invigorated the arguments made by some that the world population is on an unsustainable trajectory that will deplete the planet's resources and result in mass starvation. This is a viewpoint shared by many in the political and intellectual class. Naturally, the upshot of all this analysis inevitably points to a larger and more prominent role for government and 'experts' in determining the course of people's lives.
It is not hard to see where the fervor for such a viewpoint comes from. After all, the world population is growing quickly. When that growing population is multiplied by the average resources consumed per person, it creates what looks like an unsustainable situation. And of course, the solutions supported by the politicians and intellectuals just happens to be the one that results in them acquiring more power. Quite a coincidence...
At a deeper level, the population question is one of whether people are mouths who consume resources or minds who create new innovations. In the former mindset, people represent a vast multitude of mouths that need to be fed. In the latter scenario, people represent a vast pool of intelligence and ability that can used to make the world a more pleasant place. The truth is that mouths and minds co-exist. To the extent that people are dependent on somebody else for subsistence, they represent mouths. To the extent that people are able to use their creative energy to produce things of value, they represent minds.
People as Mouths
In a world of permanent subsistence, mouths represent a great problem. If a large population of people that is rapidly growing depends on a small population of people that is rapidly shrinking, the mathematics point to dramatic problems. The aspect of this analysis that many people seem to miss is that subsistence living is not a foregone conclusion. The history of immigrant success stories in the Unites States and many other nations across the globe demonstrate how people can discover great ability when they are free to pursue a life of economic productivity.
People as Minds
In a world of technology and innovation, minds represent a great opportunity. In a global marketplace, new ideas have an unbelievable opportunity to generate great value for the customers and great wealth for the innovators. Even if we aren't talking about world-class genius minds, people who are productive with their time and efforts still contribute real value to the worldwide economy. In this way, additional minds represent a net benefit to the global economy.
It is worthwhile to point out that many of the most valuable resources of the future have not been discovered yet. It has always been the case that new innovations change the way the world works. Before oil refining was developed and perfected, crude oil was considered to be a nuisance. After the oil energy revolution, a period of exceptional economic growth was ushered in and a tremendous ecological victory was won because oil and electricity had replaced whale blubber oil as people's primary source of heat and lighting. At all points in history, people have been unable to imagine a world that is different than the one in which they currently lived. The only people who successfully see the ways that innovations will change the global reality have historically been the people who drive those innovations. The state of economic reality is in a constant degree of change, due to new ideas that are consistently being developed and implemented.
Thus, the distinction to make with population growth is not whether it is 'good' or 'bad'... rather, it is whether the world is adding more mouths or more minds. It is worth pointing out that mouths can be transitioned into minds when the proper incentives are in place. People achieve their optimal level of productivity when there are businesses they can work for and work with. In order for those businesses to emerge, the owners need to be able to earn a sufficient level of profits to reward the risk that they take in starting a new enterprise. In order for those profits to be captured, there needs to be a tax, regulatory, financial, and business environment that is favorable to growth.
What this all adds up to is the realization that mouths and minds are frequently the same people. The fundamental difference is whether a person lives in a country or region where productive efforts are required and rewarded. This kind of situation results in more minds. To the extend that productivity is not rewarded or not required because of extensive government subsidies, there will be more mouths.
In the end, the difference between a world of mouths and a world of minds is the incentives that are put into place for the economic environment in which those people live. The true dilemma is not one of how to best divide up the existing resources, but how to optimize the business and economic environment to spur the creation of new resources. This principal is equally true in our personal lives as well as in the larger context. Most of us focus on how we can get... what we should be thinking about his how we can 'create' more that is of value to other people. The future belongs to those who create... make sure to begin creating your future today.
Sincere Thanks,
Douglas J Utberg, MBA
Founder - Business of Life LLC:
http://BusinessOfLifeLLC.com/
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