Malthus's argument can be summarized in [This Figure](https://www.core-econ.org/the-economy/book/text/02.html#einstein-modelling-malthus) , which consists of two diagrams.

The descending line in the left-hand diagram demonstrates that as the population increases, wage levels decrease due to the diminishing average product of labor. The ascending line in the right-hand diagram illustrates the connection between wages and population growth. When wages are high, the population expands, as elevated living standards result in more births and fewer deaths.

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Starting from an equilibrium with income at the subsistence level, the introduction of a new technology, such as better seeds, increases the income per person on the existing limited land. This improvement in living standards leads to population growth. As more people are added to the land, the diminishing average product of labor causes the average income per person to decrease. Eventually, incomes return to the subsistence level, but with a larger population.

Why is the population larger at the new equilibrium? The output per farmer is now higher for each number of farmers. The population doesn't revert to its original size because the income would be above the subsistence level. Enhanced technology can sustain a larger population with subsistence income.

The illustration at the end of this section demonstrates how to represent Malthus' model graphically and how to analyze the effects of new technology using it.

The Malthusian model suggests that technological advancements will not increase living standards if:

1-The average product of labor declines as more labor is applied to a fixed amount of land.


2-The population grows in response to rising real wages.

In the long run, enhanced productivity will result in a larger population but not higher wages. This bleak outcome was once considered so pervasive and inevitable that it was referred to as Malthus' Law.

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