Generational Growth and Diminishing Labor Productivity
A hypothetical scenario can be used to illustrate a primary cause of the diminishing average product of labor, which was a significant concern for Malthus. Consider an initial workforce of 800 farmers that doubles to 1,600 over a single generation due to natural population growth. As this larger workforce is applied to a fixed amount of land, labor productivity declines. Specifically, the average grain output per farmer falls from 630 kg to 486 kg, demonstrating how population growth can negatively impact individual output.
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Ch.1 Prosperity, inequality, and planetary limits - The Economy 2.0 Microeconomics @ CORE Econ
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Generational Growth and Diminishing Labor Productivity
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