Economy and the population.

I asked a question in the internet and hope that the community can answer it. It did.

This is my Question:

Is the economy dependent on the population of the country? Why is it so?

When I look at the way banks, investments and especially insurances, I can't help but think that the economy is dependent on the population. The more that was contribute means those early bird can reap the "cream". To achieve the same result at a later stage in time, the effort is more. ie, When it your time to reap the pie much more have to be contributed to get the same amount of "cream". Eg: When your policy mature, the investment have to be so much more. Why?


This the answer that I got.

I'm not sure i quite understand the last part of your question but i'll deal with the 'is the economy dependent on the population of the country' Simply speaking yes its is, very much so. In the manner that labour is a key factor of production and without it there would be no economy.
But a better answer than that deals with population increase and decrease because thats what your really talking about. If you look back at history and the industrialisation of europe, japan and the USA in fact all the largest economies in the world, their economic growth was accompanied by population increases, this was due to a variety of reasons such as better standard of living and quality of life means lower infant mortality, increased life expectancy etc, but the increased population also helped to fuel the growth as it filled the gaps in labour markets for jobs in factores etc.. As to whether this is relevant today to pick up from an earlier answer look at China and India, both experiancing huge economic growth ( Goldman Sachs predicts China and India to be the worlds two largest economies by 2050,)
Similarly much economic depression accompanies population decrease, Germany and much of mainland western europe have almost zero growth in both sectors.
Economic Growth definitely does lead to population increases but these increases usually continue to power the growth because of more labour available, improved dependancy ratios( ratio of working people to non working people) that said if the growth is not accompanied by increased productivity there may not be enough jobs for the new population and unemployment can increase causing the dependancy ratio to go the other way, ( plus if its birth led increase the babies will teporarily not be able to work!)
Lastly for those who said it doesnt matter 'look at america' they should look at America and examine the population of america in 1850 and then again in 1950 and then say its not important!


Then Another guy post this view. Although it did not answer my question directly, it point out the sentiments that a normal folks have. Still having.

We did just as well, if not better when we were still 13 colonies. Economy depends mostly on how much government interference there is. The more government, the less money we have for it.
Anything that the government pokes it's nose into is probably bad. We pay for it anyway through taxes! Let the economy run the country, they should be here just for our safety, not our happyness... or their happyness.

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