Population and Economy and Economy and Population

Economic growth causes population growth and population characteristics drive economics characteristics. Its a never-ending cycle that explains the intertwining effects of population and economy. 

The concept behind economic growth causing population growth was first acknowledged by William Strauss and Niel Howe in their Generational Theory. One of the founding principles for this theory is that when the economy is doing well, populations increase. This was mainly seen in agrarian societies as a better economy meant more resources for more children. Despite the changes in how society works, this concept was seen beyond just agrarian society and throughout history. While various other factors also influence population growth, economic growth was a key factor that is seen through the size of certain generations and the economic events that caused such growth. 

At the same time, we see that certain generations, or populations, have different economic characteristics. This can be seen in the difference in Millennials and other generations. For example, Millennials as a whole have lower incomes than those of Baby Boomer with the same characteristics and qualifications. There are more differences, such as how earnings for younger workers have remained consistent over the past 50 years, the gap between those with college education and those who don't is especially pronounced in Millennials. The trends influence our economy as the income each generation has directly correlates to their purchasing power. When Millennials as a generation have less accumulated wealth than Baby Boomers and a lower median net worth per a household than Gen X, their purchasing power is also significantly lower. 

Understanding this concept is important because our timeline does not stop there. Being able to analyze how populations grows due to economic changes allows us to better understand how our population will grow. At the same time, understanding a population as a whole will allow us to predict where our economy is heading and what direction is the right one. By being knowledgeable about the entire cycle, we gain a new perspective on the economy and the population as a whole. 


Sources : 
https://www.forbes.com/sites/cognitiveworld/2018/08/22/rethinking-millennials-and-generations-beyond/#5a7458951893
https://www.pewsocialtrends.org/essay/millennial-life-how-young-adulthood-today-compares-with-prior-generations/

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