US Population Slow Growth Impact of Supply and Demand

Is Slow Growth of population is raising issues for the US economy supply and demand? Over the decades the growth rate of the US population experience low growth rates that is causing demand and supply curve inflation in the economy. According to Census Bureau, July 1, 2018 population of the U.S. grew 0.62% low in year. Since 1937, it is lowest growth rate of US population, in couples Great Depression were uncertain about having babies and foreign people saw very little point in U.S immigration. The implications of business in the US are huge, both in the services and goods market and in labor supply. It is quite obvious that the total production and income in any country is equivalent to GDP per capita (or income per capita) multiply by current population of that country. The economy of U.S. grew more rapidly when the rate of the population growth is faster. From 1950 and throughout 1980, we averaged about 3.7% per year, adjusted inflation. From 1980 until last year, the rate of growth is averaged presently 2.7% (Conerly, 2018).

https://www.forbes.com/sites/billconerly/2018/12/22/u-s-population-growth-slowing-business-impacts-on-labor-supply-and-product-demand/#7cc40ad64238AA

With the slower growth of US population, leaders in the business need to be aware of the low growth of demand for the services and goods. Some of the divisions in the country are also cashing this trend and on the other side some of them are actually taking a leap. On average, the overall growth of the sales in business is lesser than the past. The total population of the US is not likely to address diverse ages or other components of the demographic. Let’s take an example If someone is selling diapers or an assistant in the living centers, it pays to know the distribution of age in the total population of  US (E.wesley & Peterson, 2017).

In the same way, the business you are doing may have to distinguish by ethnic group, income level, education, or many of the other factors. Though, the total population prepared the marketer in business towards the potential demand changes. On the labor side supply, the slow growth of total population in the US corresponds with baby boomers retirement to make the population of working age almost stationary. For Business in coming decade: Workers Not Available is the b business charts to demonstrate that in upcoming decade, the increase in population working -age will be lowest after Civil War (Gregfellpublichealth.wordpress.com, 2016).

In the U.S the Net foreign immigration curved in descending in last 2 years. The Immigration become slow in 2009 as a lot of workers foreign-born become unemployed and go back to their home to Mexico or other countries of Latin America, after that bounce back with the recovery of the economy in US.  The most recent decline corresponds with presidency of Trump in US, that could be fear or coincidence on part of possible refugees. The Census Bureau also guesses the total immigration in the US, both illegal and legal, though there is a lot of guesswork concerned (OZIMEK, 2017).

https://www.forbes.com/sites/billconerly/2018/12/22/u-s-population-growth-slowing-business-impacts-on-labor-supply-and-product-demand/#7cc40ad64238

The main points for the business in the US are to anticipate the growth to be more slow than average long-run, and to look forward to the shortage labor prolong for years. In order to resolve these economical issues it is important for the business to cope up with the stretched labor market and minimize the impact of the slow growth of population on the demand and supply curve of the US economy (Conerly, 2018).

The composition or size of the US population can be affect by the demand in the market. The population of any has a major impact on the demand of the country for example if greater children a family have the more demand for clothing they have. The more children of driving-age are there in a family, the greater would be their requirement for the car insurance, and relatively lesser for baby formula and diapers. The elderly citizens proportion in population of United States is also increasing. It increment from 9.8 percent in 1970 to about 12.6 percent in 2000 and is predictable by United States Census Bureau by 2030 to be 20 percent of the population. So it is quite obvious that any society with comparatively more kids, like in the 1960s the United States have, will have more demand for services and goods like day care and tricycles facilities (E.wesley & Peterson, 2017).

A country with comparatively more persons of elder age, the United States is expected to have by the year 2030, has a greater demand for hearing aids and nursing homes. In the same way, changes in the population size can have an effect on the demand for the housing and a lot of other services. All of these demand changes will be exposed as a demand curve shift (Gregfellpublichealth.wordpress.com, 2016).

The product demand may be affected by the related goods prices changes such as complements or substitutes. A substitute is a service or good in the market which can be used as an alternative for another service or good. If the electronic book on the internet becomes available, you may be expecting to see decline in demand for printed books because there is an alternative for the product is available. The substitute lower price can reduce the overall demand for products. For instance, in current years as tablet computers price has go down, the demanded quantity has augmented (because of demand law) (OZIMEK, 2017).

Since the people more tablets being purchased by the people, there has been a decline in laptops demand in the market. An advanced price for a replacement good has the turnaround effect on the goods and services. There are also some of the goods that are complementary for each other, it means that the some goods are frequently used mutually, in this case one good consumption likely to augment the consumption of other goods. For example, in the breakfast cereal and milk; gasoline and sport utility vehicles; golf clubs and golf balls; notebooks and pens or pencils; and combination of bacon, tomato, lettuce, bread, and mayonnaise (E.wesley & Peterson, 2017).

 If the golf clubs price rises, as the demanded quantity of golf clubs fall (because of demand law), complement good demand like golf balls reduce, as well. In the same way, a greater price for skis might shift the curve of demand for  complementary products like resort trips in ski to left, at the same time as a complement lower price has the reverse result (E.wesley & Peterson, 2017).

Burner and colleagues also conducted that the population aging adds another 0.5% per year to growth expenses, that means that population aging explains just a fraction of 0.06 of total expected growth spending of 8.4%. These economists came to the outstanding finale that the U.S. population projected aging, by itself, might raised overall personal spending from in 1990 $585 billion to just $714 billion in the year 2030, other than to $14.8 trillion in reality projected for that year (Gregfellpublichealth.wordpress.com, 2016).The connection between the inflation and population growth is also nonlinear, with declines in the population having a stronger result than growth of the population. This is reliable with the relatively stable housing stock that turn down slowly in reaction to the population declining. On the whole, these are the results that recommend that population growth slowing can be headwind for the US economical inflation (OZIMEK, 2017).

https://www.economy.com/getlocal?q=a7c139c0-2b8c-4abf-9b65-bd8b11392939&app=eccafile

 In the United States slow growth of population indicates that in future growth of U.S. economic will be lesser as compare with the 20th century.  The overall growth of world population will almost certainly come back to significant levels less than 1precent in a year. The per capita Average annual growth productivity has been comparatively modest over past 200 years speed up during periods when some of the poor countries start to get closer to with extremely developed economies or while fast growth of productivity is accomplish as the case in a lot of countries throughout 20th century (E.wesley & Peterson, 2017).

In Piketty’s view the danger of slow growth of population is that resultant capital concentration will lend a hand to bring back the patrimonial capitalism of 19th century more of the wealth of a person is majorly driven from the inherited wealth from ancestors than by working on talents in the service for the productive occupation. So it may be said that slow growth  of the population is a matter of concentration for the US government because in can create imbalance in the demand and supply curve of the country and eventually results in the inflation in demand and supply in the country (Gregfellpublichealth.wordpress.com, 2016).

References of US Population Slow Growth Impact of Supply and Demand

Conerly, B. (2018, December 23). U.S. Population Growth Slowing: Business Impacts On Labor Supply And Product Demand. Retrieved from http://www.talkmarkets.com/content/economics--politics/us-population-growth-slowing-business-impacts-on-labor-supply-and-product-demand?post=203691

E.wesley, & Peterson, F. (2017). The Role of Population in Economic Growth.

Gregfellpublichealth.wordpress.com. (2016, November 18). Is it the ageing population, need, demand or supply that is causing pressure. Retrieved from https://gregfellpublichealth.wordpress.com/2016/11/18/is-it-the-ageing-population-need-demand-or-supply/

OZIMEK, A. (2017). Population Growth and Inflation. Moody's Analytics .