Is lack of population a problem for stagnating GDP growth of USA?

Question

India and China have billions of people. Hence US jobs are outsourced to them. Since there are too many people, their GDP is also growing. Since western countries like US have little population compared to China, India, their GDP growth is stagnating . I generally see any country with little population like Australia, canada, there is too little scope for the high GDP.Because australia and canada are already developed there is no scope for further development

Does it mean that a country with High poplation only can boast hight GDPs and be richer?

Answer 1

The US has a reasonable population growth compared to other western countries actually, but you do ahave a valid point. The large populations in China and India that have long been rather little utilized is a large part of how thier economies are growing rapidly. We saw this happen in many eastern european nations too, as they got away from the soviet empire, thier economies grew rapidly, until they reached full employment. And then growth comes a bit slower. Then you have to improve productivity. And with productivity in India and China still well behind that of western nations, much needs done in that arena too, before the countries populations can begin to see western living standards.

Answer 2

When the population is not growing.  Then the only way to have economic growth is through increasing efficiency and worker porductivity.  The same number of workers can produce more by working harder and smarter with the help of education and technology.

But workers everywhere can increase their productivity and efficiency.  And in the long run, the country that has more people will likely have a bigger economy.

Of course, it's not just the number of people that matter.  The country's management of the economy plays a big role too.  The government can easily mismanage the economy of its country and decrease its economic growth.

Answer 3

Well china and india have something called cheap labour. The you see im sure if america wanted to it could make its GDP far more however they dont because of inflation and other factors. China's level of inflation is something like 11 percent. Also USA just had a cyclical recession which reduces GDP growth and AGG demand. So really USA doesn't need cheap labour to have high GDP growth.

Answer 4

Doubtful.  Your logic doesn't make sense.  Just because China is doing better, doesn't mean you can just pick any fact about the country and use that as the reason for it.  China has always had a high population comparitively to other countries.  But they are only doing better recently.

In my correct opinion, the MAIN reason China is gaining ground is that they are turning FROM COMMUNISM TOWARDS CAPITALISM.

The U.S. is not going to "breakout," if you will, from it's stagnation until we fully embrace our capitalist roots.  We keep dabbling in socialism and it's hurting us.

LET THE FREE MARKET WORK.  DESTROY SOCIALISM!