Implications of over population in an economy.

Benefits of over population

• It increases the size of the domestic market for both the manufactured and agricultural products.
• Encourages investment
• It stimulates rapid economic growth. This is due to the expansion of investments as a result of increase in market size.  .
• It increases labour supply and mobility in the country. This increases output hence economic
• Encourages hard work to sustain the population.
• Encourages innovation and invention
• The big population puts pressure on the government  to provide social services so as to meet the basic needs of people.

Disadvantages/disadvantages of over population

• It leads to low standards of living. This is due to high cost of living and low per capita income.
• It leads to over straining of the available social amenities like water supply, medical services, electricity, roads etc.
• It leads to food shortage in the economy.  This results in famine and malnutrition hence poor health conditions.
• It leads to excessive demand for goods and services in the economy hence demand pull inflation.
• It leads to balance of payment problems.  This is due to increased importation of commodities in the country.
• It encourages rural urban migration with its associated problems. This is because people leave the rural areas to come and enjoy the better services in urban areas.
• It increases the levels of unemployment and under employment in the economy as a result of excess population.
• It leads to over exploitation of natural resources hence environmental degradation in form of pollution.
• It reduces government tax revenue in case the majority of the people are poor.
• It encourages political instabilities  in  form  of civil  wars  due  to  the  excessive   pressure   on  the government   for social
• It increases dependence burdens in the economy. This discourages savings and investments due to high consumption   expenditure.
• Leads to brain drain
• Limited domestic market due to low income