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The article seems to be conflating GDP with GDP-per-capita. A booming population is an easy way to boost GDP, but a lousy way of growing GDP-per-capita. Convers
by whack 6y ago
The article seems to be conflating GDP with GDP-per-capita. A booming population is an easy way to boost GDP, but a lousy way of growing GDP-per-capita. Conversely, there's no reason "poor countries" can't grow their average worker income by investing in education and worker productivity. The idea that developing nations are "running out of time" is ridiculous - time has really been their best friend in growing their average income.
- dragonwriter 6y ago> Conversely, there's no reason "poor countries" can't grow their average worker income by investing in education and worker productivity. Yes, there is: rich countries, and the vastly higher pay they offer the productive. Poor countries investing this way are largely subsidizing rich countries.
- imtringued 6y agoYes they are sometimes (!) subsidizing rich countries but you are saying that is the only thing that is happening which is completely wrong. Not everyone is leaving their country and even those who leave are willing to support their families with remittances.
- econcon 6y ago80-20 rule applies. All the brilliant students I studied with left for the US. Imagine investing in multiple startups and then the Unicorn leaving for the foreign land. Money invested in every student doesn't return same amount of wealth to the country Richer countries can selectively skeam the cream at the top.
- shalmanese 6y agoIn the long term, GDP per capita matters but in the short term, you can run ahead of the piper and raw GDP growth is a much better proxy. In developing countries, children become productive fairly quickly and then it takes them quite a long time before you need to worry about the burden of supporting them again. It's a Ponzi scheme but one that multiple countries have pulled off successfully.
- dragontamer 6y ago> Conversely, there's no reason "poor countries" can't grow their average worker income by investing in education and worker productivity Emigration. A highly educated worker will leave a poor nation and instead work in a rich nation. This is a problem inside of countries too. Folks from poor parts of the USA move to richer areas to gain a better way of life.
- ashtonkem 6y agoWhich actually acts like a transfer of wealth. Education is expensive, and the assumption has always been that educated citizens help grow their economy and country. But when educated citizens emigrate, their new homes get the economic and cultural benefit of another educated citizen without having to foot the bill for educating them. Long story short, the emigration of educated citizens makes a country poorer.
- zozbot234 6y agoThe transfer of wealth goes both ways, since expats' remittances are a significant source of income and investment to many developing countries. Return migration is also common, and a very significant source of benefits to the home country. It's pretty much a win-win.
- growlist 6y ago> It's pretty much a win-win. Even in strictly financial terms this is a dubious claim.
- harpratap 6y agoThat depends on the fact that rich countries are accepting of migrants, which looks like is reversing in last couple of years in US (which other countries may follow)
- dragontamer 6y agoEven ignoring international emigration, there's still internal emigration to worry about.