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Economics of Overpopulation

multinational, overpopulation, profits, income

Currently, there are near seven million people living on the planet, Earth. The population will double in the next twenty years. This unrestrained and irresponsible growth represents problems and opportunities for people and companies.

For people, there will be fighting for and chasing after limited and scarce resources. The Earth only has so much land and resources. The law of supply and demand says the prices of products and items depend on the amount available and the level of demand. Prices will eventually skyrocket. Prices, at the present time, are rising and will continue to rise.

More people means more competition for jobs. Large companies move their operations to developing countries because the largest expense component of operating costs is labor. Thousands of people in these countries are willing to work for low wages. And the more increasing population, the more people are willing to take any job at any wage level.

Workers in developed and higher income countries will see their jobs disappear to undeveloped nations. The standard of living for these higher income workers will decrease. Many people will lose their jobs. Eventually, the economies of these countries will suffer.
The winners are the multinational companies able to move their operations where the price of labor is much lower. These companies can produce products in developing nations and then sell the products in higher income nations. The bottom line profit will improve for these companies.

Not only are expenses lower but large, growing populations means more consumers to buy the products. Sales will increase. The growth of sales is only limited by the growth of population.

And companies advertizing in the media can encourage population growth by explicitly showing sex and sexual attraction as a means of increasing sales. Companies know that sex sells products, more sex-more sales.

Overall, the future looks bright for multinational companies. On the other hand, the uncontrolled growth of population is a serious threat to the stability of the world.

Published: 2009-10-27
Author: Fred Westmark

About the author or the publisher
Fred W. is a freelance writer of six film scripts, three novels, twenty-five short stories, and many blogs. He enjoys football and reading English authors. Traveling is a passion for him. He also writes articles on privacy for an Internet newsletter on freebooter.com.

He is an avid and serious student of history. His favorite historical characters are Skooby Doo and Dr Who. Seriously, the Middle Ages, the Renaissance, and the French and American Revolution interest him.

He teaches collegW

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