That's an interesting Malthusian argument. I think I mostly agree in a sense that vast majority of PhD students I know had plans of staying in academia but had

That's an interesting Malthusian argument. I think I mostly agree in a sense that vast majority of PhD students I know had plans of staying in academia but had to join industry precisely because lack of resources. But if there were more resources and they did join academia they would then oversee an even greater number of grad students until we again hit subsistence.