RESOURCES AND POPULATION GROWTH

The theorists of the capitalist economy have accepted Malthus thesis that asserts that due to the rapid increase in population as compared to food-stock limited resources cannot satisfy the needs of population. According to this view, increase in population is a great danger, and it is necessary to prevent such increase.

The National Economic Model rejects this erroneous statement and bases its analysis on real situation in the world. It offers solution to the problem by rightfully asserting that resources existing for satisfying the wants are “unlimited”. When lifting an assumption about deficit of money and technological restrictions the so-called “limited resources” cease to be so.

If we remove in the economic system obstacles to mobilizing labor for economic activities, then the number of “products made by a human per time unit” will be greater than the number of “products consumed by a human per time unit”.

In accordance with our theses, every individual possesses potential to produce more than he or she consumes, and there are quite enough resources available to accomplish this in necessary quantities.
From our point of view, it is important to put into action economic policy that stimulates involvement of labor into economic activities and fosters productivity improvements.

It can be effected only through the system proposed by the National Economic Model.

Because the National Economic Model considers human producing capacity to be greater than that of consuming, the growing population of the world is no danger to the future; on the contrary, it is light of hope.

In our opinion, each newly born child is not a burden for the national economy as it is viewed by other economic systems. On the contrary, it is a force that increases consuming power, stimulates production and takes part in it.

Pursuant to the National Economic Model, every consumed product and labor will serve both growth in production and its diversification.

The studies, performed currently in England, Germany, Italy and Japan, indicate that due to the ageing of population the living standards are deteriorating. Therefore, there is a need for more human resources to undertake production.

These studies in countries with capitalist economies prove correctness of the new insight brought by the National Economic Model on population growth.

The fundamental difference between the National Economic Model and other well-known economic views lies just at this point. From our perspective, economics is the science to ensure restful life for every person through maximum use of unlimited resources.