American Gadfly

Commentary, Critique, and Insight on Contemporary America

Thursday, March 16, 2006

Population growth, a huge inflationary force?

Inflation hawks might be temporarily breathing a sigh of relief over today's Labor department report of a modest 0.1% rise in consumer prices for February.
Rather than superficially celebrate this number, let's look at one of the great forces that will assuredly lead to inflation in many economies of our planet. This force is population growth, or rather, overgrowth. Anytime a region has more and more people in it, there will by definition be more demand for resources - food, water, gas, cars, homes/apartments, etc. If the population grows faster than the resources available to support it, you will get supply and demand imbalances and added pressure to consume more resources from elsewhere.
We as a country, and as denizens of this planet, are becoming more and more numerous. America will top 300 million residents this year, while our planet has 6.5 billion humans residing on it. This added to the fact that people are living longer, is leading to less elbow room in most areas of the planet. Sure, we still have vast expanses of America and our planet that are sparsely inhabited, but nevertheless, the more mouths to feed on this planet, the more demand for lots of resources, including oil.
We as humans need to start a dialogue about this issue. We need to critically look at possible benefits of having fewer children, of trying to taper population overgrowth, to help preserve the quality of life for all of us already here. The current jump in gas and oil prices in the world should be a wake up call to the magnitude of resource and other consumption in this country and our planet as a whole.

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