Population and Economic Growth

Measuring Population Every 10 years the government takes a census Urban Population – people living in places with more than 2,500 inhabitants Rural Population – people living outside of urban populations

Historical Growth From 1790 to 1860 population was growing around 3 percent a year From beginning of the Civil war to 1900 the rate dropped to 2 percent a year From 1900 to WWII the rate fell to 1.4 percent From WWII to now the rate has been around 1 percent

Regional Change Since the 1970s the North and East have slowed in population growth Warmer and more spacious parts of the country have increased in growth rate The center of population has consistently shifted west

Center of Population 1790-2000

Questions What effect does a growing population have on GDP and GNP? Why is it better to measure both numbers per capita? What impact does the shifting of the center of population have on the economy?

Projected Trends Baby Boomers – people born from 1946 to 1964 make up a sizable portion of the population When baby boomers retire they will place a large burden on entitlements and the dependency ration will change

Population Pyramid

Projected Trends cont. Race and Ethnicity – The portions of most minority groups are projected to rise, with the Hispanic population growing by the largest percent

Population Growth Fertility rate – tracked by births per 1,000 women. Current rate is 1,900 Life expectancy – 78.8 years Net immigration – just over 1,000,000 per year

Questions Why do we care about projecting population growth? What can figures like fertility rate, life expectancy, and net immigration tell us about the future of our economy?