Malthus, the false prophet

The Economist: Malthus, the false prophet

The pessimistic parson and early political economist remains as wrong as ever.

AMID an astonishing surge in food prices, which has sparked riots and unrest in many countries and is making even the relatively affluent citizens of America and Europe feel the pinch, faith in the ability of global markets to fill nearly 7 billion bellies is dwindling. Given the fear that a new era of chronic shortages may have begun, it is perhaps understandable that the name of Thomas Malthus is in the air. Yet if his views were indeed now correct, that would defy the experience of the past two centuries.

Malthus first set out his ideas in 1798 in “An Essay on the Principle of Population”. This expounded a tragic twin trajectory for the growth of human populations and the increase of food supply. Whereas the natural tendency was for populations to grow without end, food supply would run up against the limit of finite land. As a result, the “positive checks” of higher mortality caused by famine, disease and war were necessary to bring the number of people back in line with the capacity to feed them. ,,,

…His ideas, especially his later ones, were arguably an accurate description of pre-industrial societies, which teetered on a precarious balance between empty and full stomachs. But the industrial revolution, which had already begun in Britain, was transforming the long-term outlook for economic growth. Economies were starting to expand faster than their populations, bringing about a sustained improvement in living standards….

…The Malthusian heresy re-emerged in the early 1970s, the last time food prices shot up. Then, at least, there appeared to be some cause for demographic alarm. Global-population growth had picked up sharply after the second world war because it took time for high birth rates in developing countries to follow down the plunge in infant-mortality rates brought about by modern medicine. But once again the worries about overpopulation proved mistaken as the “green revolution” and further advances in agricultural efficiency boosted food supply.

If the world's population growth was a false concern four decades ago, when it peaked at 2% a year, it is even less so now that it has slowed to 1.2%. But even though crude demography is not to blame, changing lifestyles arising from rapid economic growth especially in Asia are a new worry. As the Chinese have become more affluent, they have started to consume more meat, raising the underlying demand for basic food since cattle need more grain to feed than humans. Neo-Malthusians question whether the world can provide 6.7 billion people (rising to 9.2 billion by 2050) with a Western-style diet.

Once again the gloom is overdone. …

…A new form of Malthusian limit has more recently emerged through the need to constrain greenhouse-gas emissions in order to tackle global warming. But this too can be overcome by shifting to a low-carbon economy. As with agriculture, the main difficulty in making the necessary adjustment comes from poor policies, such as governments' reluctance to impose a carbon tax. There may be curbs on traditional forms of growth, but there is no limit to human ingenuity. That is why Malthus remains as wrong today as he was two centuries ago.